NEW DELHI: Sunil Mittal-led-Bharti Telecom is planning to raise as much as $858.32 million through shorter-tenor bonds, according to a report. Bharti Telecom, which holds a stake in Bharti Airtel, will raise funds in three tranches and has invited bids from investors on Friday. The company aims to raise Rs 1,500 crore through two-year bonds at a coupon of 8.70% and Rs 2,500 via three-year bonds at 8.80% coupon. It aims to raise Rs 30 billion via three-year bonds at a six-month marginal cost of lending rate, which currently stands at 8.40%, through Kotak Mahindra Bank.
It is expected that the company will use the proceeds to refinance or service its debt and to pay all fees, costs and expenses related to the issue. Kotak Mahindra Bank is the sole arranger for the bond issue, allotment for which will happen on Nov. 21. Bharti Telecom commercial papers, worth nearly Rs 116 billion, are due to mature over the next few weeks, according to an ICRA rating document.
Meanwhile, Bharti Airtel announced the launch of a 5G network at Pune Lohegaon Airport. With this launch, Airtel has covered 11 cities with its 5G networks. The company said this 5G service will be available for customers who are flying in and out of the airport. The other cities, Airtel’s 5G services are available include Pune, Delhi, Mumbai, Chennai, Hyderabad, Bengaluru, Panipat, Gurugram, Siliguri, Bengaluru, and Nagpur.