Airtel to raise $4 bn in order to pay AGR dues

Bharti Airtel board on Wednesday approved the raising of $4 billion through equity dilution and debt funding.
Airtel business customersAirtel will use the proceeds to fund its adjusted gross revenue (AGR) dues. Airtel earlier said the liabilities / provisions as at September 30, 2019 total Rs 34,260 crore — comprising of principal of Rs 8,747 crore, interest of Rs 15,446 crore, penalty of Rs 3,760 crore and interest on penalty of Rs 6,307 crore.

Airtel has provided for an additional amount aggregating Rs 28,450 crore as a charge for the quarter — comprising of Principal of Rs 6,164 crore, interest of Rs 12,219 crore, penalty of Rs 3,760 crore, and interest on penalty of Rs 6,307 crore.

The company said in a regulatory filing it will raise $2 billion through “one or more” QIP, public and/or private offerings of equity shares, compulsory convertible debentures and other convertible securities/warrants/ADR/GDR or a combination thereof.”

It also cleared the issuance of “unsecured and/or secured” FCCBs or other similar “security denominated in foreign currency (ies) or combination thereof,” in one or more tranches on a private placement basis, aggregating $1 billion.

Additionally, it approved the issuance of redeemable non-convertible debentures along with warrants or other similar security in one or more tranches for an aggregate amount of up to $1 billion on a private placement basis or otherwise. The overall issuance under the last two categories will be $1 billion.

Airtel has already raised close to $10 billion over the past year, including the funds raised during the pre-IPO and post-IPO of Airtel Africa totalling around $2.5 billion, and the recent rights offer of around $3.5 billion.