The special committee of directors for debt fundraising, on February 25, 2021, approved the pricing, tenure and other terms and conditions w.r.t. issuance of senior unsecured foreign currency (USD) denominated notes aggregating to $750 million, the company said in the release.
This forms a part of total debt fundraise of $1.25 billion by the company through its first-ever dual tranche of dollar bond offering, including the aforesaid issue of $750 million and issue of guaranteed perpetual securities of $500 million by Network i2i Limited, a subsidiary of the company.
This is the largest issuance by any Indian Investment Grade issuer since January 2019, the company said.
The offering was oversubscribed with strong demand from several marquee Asian, European and American funds, it said.
“The strong reception of both our senior and perpetual bonds by high quality global investor community reflects its confidence in our business and credit," said Ashish Sardana - Group Treasurer, Bharti Airtel.
"We remain focused on keeping our balance sheet strong and these issuances further bolster our capital structure," he added.
Broking house Dolat Capital see company as a structural growth story for the next 4-5 years and this growth will be a 2-phase process.
In the first phase, there will be a 10-15% ARPU CAGR over the next 3-4 years primarily led by tariff increases. This is inevitable for a three-private player market structure.
In the second phase, we expect telcos to capitalize on alternate revenue streams viz. FTTH, content, payment, healthcare, education, advertising etc in partnership with other players that ride on the telcos infrastructure, said Dolat Capital.
It kept buy rating with target price of Rs 700 at 10/6x Dec-22E EV/EBITDA for India Wireless/Africa.
At 1203 hours, Bharti Airtel was quoting at Rs 580.15, up Rs 7.20, or 1.26 percent on the BSE.The share touched its 52-week high of Rs 623 on February 4, 2021 and and 52-week low of Rs 381.05 on March 19, 2020. It is trading 6.88 percent below its 52-week high and 52.25 percent above its 52-week low.