Bharti Airtel, India’s largest mobile operator, has issued a Swiss franc-denominated bond to raise SFr350m (US$401.9m).
The notes, which mature in March 2020, carry a 3% coupon and priced at 100.508 to yield 2.98%, equivalent to a spread of 230bps…
Bharti Airtel, India’s largest mobile operator, has issued a Swiss franc-denominated bond to raise SFr350m (US$401.9m).
The notes, which mature in March 2020, carry a 3% coupon and priced at 100.508 to yield 2.98%, equivalent to a spread of 230bps over mid-swaps.
Managers on the transaction were BNP Paribas, Deutsche Bank and UBS.
Proceeds will be used to refinance its existing debt, which stood at about US$9.3bn as of 31 December 2013.
Moody’s rated the bond Baa3, while both Standard & Poor’s and Fitch assigned a BBB- rating.
In a release, Fitch justified its rating, saying that its “funds flow from operations (FFO)-adjusted net leverage will improve”, that its profitability will remain sustained in India and will improve in Africa but that its capex could rise.
In December last year, Bharti launched its first ever eurobond, raising €750m. The issue was later upsized by €250m to €1bn.
The offering was not only Bharti’s first such issuance but also the first by an Indian corporate or emerging market telco.
Harjeet Kohli, the group treasurer, said at the time that the “transaction helps us continue to diversify sources of funding and the euro financing also acts as a natural hedge to many of our African businesses where local currency is pegged to euros”.
Bharti has a significant US debt exposure following its heavily financed expansion into Africa in 2010 when it snapped up most of Zain’s African operations for a total US$10.7bn.
