Bharti Airtel has raised $1 billion through a bond sale in the overseas market. The bond has been over subscribed by more than nine times, making it the largest bond issue by an Indian telecom player.
The bond issue was launched by Bharti Airtel International (Netherlands), a wholly-owned subsidiary of Bharti Airtel. The 10-year unsecured notes due on 2023 have a coupon rate of 5.125 per cent per annum.
The company plans to use the net proceeds to reduce its existing debt. As of December 2012, Bharti Airtel had total debt of $13.6 billion and cash and equivalents of $1.9 billion, while its operations in Africa are making losses.
According to Bharti Airtel, geographically, the notes were distributed 37 per cent in Asia, 30 per cent in Europe and 33 per cent in the US.
