Bharti Telecom, the parent company of Bharti Airtel has raised around Rs 35 billion via commercial paper (CP). The CP offered around 6.16 per cent on average with a three-month maturity.
As per the Bharti Group, these are routine treasury activities by Bharti Telecom to manage rates and refinancing of its own existing portfolio.
As per industry experts, the money raised, tapping cheaper funding avenues, will be used to refinance existing loans and meet working capital needs.
Meanwhile, Bharti Telecom also plans to raise $1 billion by selling a 2.75 per cent stake in the Bharti Airtel, through a block deal likely to take place soon. The stake sale is expected to happen at Rs 558 per share. As per industry sources, the expected buyers include global investors such as Fidelity, Segantii Capital and Norges Bank as well as local funds such as HDFC Mutual Fund, SBI Mutual Fund and Birla Mutual Fund.
Bharti Telecom owns 38.79 per cent in Airtel, and its stake will fall to around 36 per cent after the block deal.