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Airtel raises Rs. 2,100 crore from second bond sale in 2 months

Mumbai/New Delhi: To prepare a war-chest for the forthcoming spectrum auction, Bharti Airtel on Monday hit the overseas bond market second time in as many months this fiscal year and raised 250 million euros in
PTI January 14, 2014 17:06 IST
PTI
Mumbai/New Delhi: To prepare a war-chest for the forthcoming spectrum auction, Bharti Airtel on Monday hit the overseas bond market second time in as many months this fiscal year and raised 250 million euros in a five-year money by reopening its 750 million euro bonds sold last month.

The company priced at the tap-issue (reopening of an existing issue) 275 bps above the Euro-MS rate.

"Bharti Airtel International (Netherlands) today priced the 250 million euro (about Rs. 2,100 crore) tap issue of its December 2018, 750 million euro bond issue at 275 basis points above the EUR MS," one of the lead bankers told PTI here this evening.

According to the i-banker, who wished not to be named, the company had given an initial guidance of 280-285 bps above the MS rate, but the final pricing came down to competitive 275 bps above the EUR MS.

Bharti had raised 750 million euros in December last year from these senior unsecured (Reg S) notes at 4.05 per cent coupon, the i-banker said.

"Bharti Airtel is looking to raise total of 1 billion euro (about Rs. 8,400 crore) from EUR bond. It has already raised 750 million euro in December from these notes," an industry source said.

A Bharti Airtel spokesperson declined to comment on the development.
 
In December, 2013, the Sunil Mittal-led firm had raised euro 750 million (about Rs. 6,350 crore) in the first such bond issue by a corporate and received bids worth euro 3.8 billion.