Airtel retires Rs 6,796 crore debt

Telecom operator Bharti Airtel has retired Rs 6,796 crore debt. Reliance Communications also reduced debt of $1 billion last week.

The company says it has utilized the proceeds of Rs 6,796 crore from the preferential allotment in June 2013 of 5 percent equity shares in Bharti Airtel at Rs 340 per share to Qatar Foundation Endowment.

Bharti Airtel says this debt reduction will result in an improvement in the capital structure and balance sheet leverage for the company.

In June 2013, Airtel Bharti had issued 199,870,006 new equity shares, representing 5 percent equity stake in the Company, to Qatar Foundation Endowment for a total consideration of Rs 6796 crore.

Last week, Reliance Communications said it has made full repayment of two loans amounting to $1 billion (around Rs 6,000 crore), during the June quarter.

Reliance Communications has completed full repayment of two Syndicated ECB loan facilities of $500 million each, which were availed in 2007 from a group of international banks, during the quarter ended June 30 2013.

Reliance Communications has made scheduled repayments of another $207 million in respect of other foreign currency loans, on the respective due dates during the April-June quarter. The repayments have been from the company’s rupee resources.

Its foreign currency debt is steadily declining every year, and the interest outgo on such debt is fully covered by USD denominated earnings from the Reliance Globalcom business.

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