Indian mobile giant Bharti Airtel plans to issue its first ever sterling bond, to be listed on the London Stock Exchange. It will be worth up to £500m (US$761m). The announcement comes during PM Narendra Modi’s UK visit, expected to lead to billions of dollars worth of deals.
Indian mobile giant Bharti Airtel (NSE:BHARTIARTL) plans to issue its first ever sterling bond, to be listed on the London Stock Exchange. It will be worth up to £500m (US$761m).
The announcement comes during Indian Prime Minister Narendra Modi’s (pictured) visit to the UK, with firms from the two countries expected to ink deals totalling more than £9bn (US$13.7m)).
The New Delhi-based telco said proceeds from the bond would be used to refinance its existing loan portfolio.
Airtel group treasurer Harjeet Kohli commented: “Besides utilising the capital and expertise of the United Kingdom in financing Indian telecom growth story, the issue will further strengthen the long-term strategic partnership between the two nations.”
Airtel said the bond would also help it to further diversify its investor base and extend its debt maturities.
The offering and its timing are subject to necessary approvals and market conditions.
Modi, whose UK visit marks the first by an Indian prime minister in a decade, was cited during a speech to parliament yesterday saying that India and Britain need to create “one of the leading global partnerships”. He described India’s relationship with the UK as “of immense importance”, saying his country sees it as its entry point to the EU.
Airtel already has bond issuances in US dollars, euros and Swiss francs listed on the Singapore, Frankfurt and Swiss stock exchanges, which it says have set a yield curve for its credit.
India’s largest cellco had more than 339 million customers across the 20 Asian and African countries in which it operates as of the end of September 2015.
Meanwhile, Vodafone has announced plans to invest US$2bn to expand its existing capacity and new business initiatives in India. The announcement followed a meeting between Vodafone CCO Vittorio Colao and the Indian PM during his UK visit.