Bharti Airtel announces pricing of $1.25 billion dual-tranche senior 10.25-year bond

New Delhi [India], Feb 25 : Bharti Airtel said on Thursday it has successfully priced its debt fund raise of 1.25 billion dollars through the issuance of its first ever dual-tranche US dollar bond offering spread across senior and perpetual issuance.
This is the largest issuance by any Indian investment grade issuer since January 2019. Airtel priced 750 million dollars of senior 10.25-year bonds at a yield of US 10-year treasury plus 187.5 basis points for an implied coupon of 3.25 per cent.
Simultaneously, Network i2i Ltd -- a wholly-owned subsidiary of the company -- priced 500 million dollars in guaranteed subordinated perpetual NC 5.25-year bonds with a coupon of 3.975 per cent.
This is a lowest every yield on 10-year and perpetual bonds for Bharti Airtel. The offering was significantly oversubscribed with strong demand from several marquee Asian, European and American funds.
Ashish Sardana, Group Treasurer at Bharti Airtel, said the strong reception of both senior and perpetual bonds by high quality global investor community reflects confidence in company's business and credit.
"We remain focused on keeping our balance sheet strong and these issuances further bolster our capital structure. We are delighted by the outcome and thank our investors for their continuing support," he said in a statement.