Vodafone Idea raises Rs 15 billion via NCDs (India)
Vodafone Idea, the merged entity of Vodafone India and Idea Cellular, has raised Rs 15 billion through a private placement of non-convertible debentures (NCDs). This is the first debt that the merged entity has raised. The debentures offer an interest rate of 10.9 per cent per annum and have a maturity period of five years. Idea Cellular and Vodafone India recently announced the completion of their merger, which is valued at approximately Rs 1.6 trillion and has led to the formation of the largest telecom operator in the country.
Bharti Infratel-Indus Towers merger receives SEBI approval
Bharti Infratel has received clearance from the Securities and Exchange Board of India (SEBI) for its merger with Indus Towers. It will now approach the National Company Law Tribunal for its approval. Earlier, in April 2018, Bharti Airtel, Idea Cellular and the Vodafone Group had agreed to merge the operations of Indus Towers and Bharti Infratel to create the largest mobile tower operator in the world outside China. It will have over 163,000 towers across 22 service areas. Post the deal, Airtel and Vodafone will jointly control the merged company. The transaction sets Indus Towers’ enterprise value at Rs 715 billion and is expected to close before the end of 2018-19.
RJIL’s Rs 15 billion fundraising witnesses participation from 22 mutual funds
A total of 22 mutual funds have contributed to Reliance Jio Infocomm Limited’s (RJIL) Rs 15 billion fundraising, which was carried out through a private placement of NCDs. The mutual funds include SBI Short Term Debt Fund, DSP Blackrock Short Term Fund, HDFC Short Term Debt Fund, IDFC Bond Fund, Axis Mutual Fund and ICICI Prudential Corporate Bond Fund. The NCDs bear a coupon rate of 8.7 per cent per annum and are redeemable in July 2021.
RCOM decides to buy back overseas bonds worth $300 million
Reliance Communications (RCOM) has decided to buy back its overseas bonds worth $300 million, which offered a 6.5 per cent coupon rate with 2020 maturity. The bonds can be either bought at a discount in cash or be exchanged with any or all of the existing securities, at a discount, for $45 million zero coupon notes maturing in 2023. RCOM has stated that its subsidiary, Global Cloud Xchange, will be the issuer of the new debt securities.
Bharti Airtel to raise up to $1.5 billion from Warburg Pincus
Bharti Airtel is planning to raise as much as $1.5 billion from Warburg Pincus by divesting up to 15 per cent in Bharti Airtel International (Netherlands) BV (BAIN BV), the holding company for its Africa operations. The infusion will help the company repay some of its debt and fend off competition in the Indian market. The proposed stake sale is a precursor to the listing of Bharti Airtel’s Africa business in the overseas market. The proposed deal with Warburg Pincus is expected to value Bharti Airtel’s Africa unit at $8 billion-$9 billion. The two transactions are likely to be completed by December 2018.
Route Mobile receives SEBI’s approval to raise Rs 6 billion through an IPO
Route Mobile has received approval from SEBI to raise Rs 6 billion through an initial share sale. The company had filed the draft papers with SEBI in January 2018, seeking its clearance to float its initial public offering (IPO). As per the draft papers filed with SEBI, the IPO includes a fresh issue of shares worth Rs 3.5 billion and an offer of sale of up to 6,500,000 shares. The company will use the funds raised through the public issue for investment in its UK operations, for repaying a loan availed of from Deutsche Bank AG, and for acquisitions and other strategic initiatives. The company seeks to raise Rs 6 billion through the IPO, which is expected to value Route Mobile at around Rs 25 billion.
China Tower’s IPO raises $6.9 billion (China)
China Tower has raised around HKD 54.3 billion ($6.9 billion) through its IPO. A total of 4.31 billion shares were sold at HKD 1.26 apiece. The company plans to use 60 per cent of the proceeds for capex, primarily for the erection of new towers and for improving the existing sites, including the construction of new 5G networks.
Hong Kong’s HKBN to buy WTT (Hong Kong)
Hong Kong Broadband Network (HKBN) has announced a HKD 10.5 billion ($1.3 billion) deal to acquire local business service provider WTT Holding. HKBN has agreed to conditionally purchase all of WTT’s shares in exchange for issuing a combination of HKBN shares and vendor loan notes to WTT’s joint owners, MBK Partners and TPG. The merger is expected to be completed in the first quarter of 2019. Post the merger, MBK and TPG will hold around 11.66 per cent of HKBN’s shares.
MTN signs a loan of around $500 million to fund capex (Nigeria)
MTN Nigeria has signed a NGN 200 billion ($553 million) seven-year medium-term credit facility, with a consortium of 12 local banks. The operator will use the funds for its capital expenditure and working capital. FBN Quest is acting as the facility agent.
