Airtel announces pricing of $750 mn securities offering

Bharti Airtel subsidiary Network i2i has priced its offering of $750 million 5.650 percent subordinated perpetual securities.
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The securities are guaranteed by Bharti Airtel. The Securities are expected to be rated BB by both S&P and Fitch.

This is Airtel’s inaugural hybrid securities offering. This is the first telecommunications G3 hybrid securities from Asia Pacific excluding Japan. This is also the first subordinated perpetual by an Investment Grade Corporate out of India.

The Securities priced at par at a coupon and yield of 5.650 percent. The Securities are subordinated and rank pari passu with any parity obligations and senior only to junior obligations of the Company. The proceeds shall be used for refinancing, investments in subsidiaries and general corporate purpose.

“In the backdrop of the global economic environment, the strong response for our inaugural hybrid securities offering from high quality investors across Asia, Europe and the United States underlines the future growth potential of our business,” Ashish Sardana, head – Treasury,  Bharti Airtel, said.

Airtel in a statement said that it will be focussing on strengthening its balance sheet and the subordinated perpetual issue with 100 percent accounting equity treatment helps us in deleveraging further.

Barclays Bank, BNP Paribas, Citigroup Global Markets, The Hongkong and Shanghai Banking Corporation, J.P. Morgan Securities, Merrill Lynch (Singapore) and Standard Chartered Bank acted as Joint Book runners.