Bharti Airtel has announced that its wholly-owned subsidiary Network i2i Limited has priced a Rule 144A/Regulation S offering of $750 million 5.650% Subordinated Perpetual Securities.
The Securities are guaranteed by Bharti Airtel and are expected to be rated BB by both S&P and Fitch.
The Securities priced at par at a coupon and yield of 5.650%. 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.
Ashish Sardana, Head – Treasury, Bharti Airtel said, “In the backdrop of the current 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. We continue to be focused on strengthening our balance sheet and this subordinated perpetual issue with 100% accounting equity treatment helps us in deleveraging further. We are delighted by the outcome of this transaction and the continuing support and appreciation of our credit by the global investor community.”
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 bookrunners.