
According to a report, Bharti Telecom (BTL), a significant proponent of Bharti Airtel, intends to raise up to Rs 6,000 crore of debt through non-convertible debentures (NCDs) to purchase the remaining 3.33 shareholding that Singapore Telecommunications (Singtel) will sell in the telecom company.
According to the report, leading foreign portfolio investors (FPIs) are likely to sign up for the planned rupee-linked NCDs in large numbers.
Singtel acquired 1.76 percent of Airtel this past week in block transactions for just over Rs 7,100 crore. Bharti Telecom paid Rs 6,604 crore to attain the majority of that stake—roughly 1. 62 percent—while public Airtel stockholders paid the remaining 0. 14 percent.
According to the report, Bharti Telecom is currently seeking new debt in order to partially fund the acquisition of the final 1. 57 percent stake from Singtel. Several banks, including BNP Paribas, HSBC, Japan’s MUFG, and Standard Chartered Bank, are probably assisting Bharti Telecom in raising the funds through rupee-linked NCDs.
The NCDs are anticipated to have relevant and time-bound, ranging from one to three years. The Southeast Asian carrier has blocked out any additional stock investment in Bharti Telecom, according to analysts, thus the Bharti Group will need to issue debt to pay for the share investment in Singtel.