Telecom

Bharti Airtel wants to raise £500 million on the London Stock Exchange to refinance its debt

Tuesday, 17 November 2015 04:22

The Indian telecommunications group Bharti Airtel is considering issuing its first bond on the London Stock Exchange (LSE) to raise £500 million ($760 million). The money will be used to refinance its debt. The company led by Indian businessman Sunil Bharti Mittal explained that the completion of this financial operation is subject to many factors, including obtaining the necessary approvals from the financial authorities, the global environment for credit and market conditions.

In a memo published on 13 November 2015, Bharti Airtel explained that the bond issuance in question should efficiently help the company in its strategy "to pursue in the diversification and extension of its financial obligations". Harjeet Kohli, treasurer of the group, stressed in this memo that the issuance of British pounds sterling "will be used to refinance our portfolio of existing loans. Apart from using the capital and the expertise from the United Kingdom in refinancing the growth of telecommunications in India, this issuance will strengthen even more the long term strategic partnership between these two countries".

As at 30 June 2015, Bharti Airtel's debt stood at USD 9 billion. The company who ardently wishes to reduce its debt opted for a new solution: a bond issuance, in light of the relative success of the sale of its telecoms towers in Africa, an operation started since 2014.

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