Friday , January 27 2023

Bharti Airtel Ltd. : Bharti Airtel International begins buying $ 1.5 billion of bonds to reduce debt


Bharti Airtel, together with its subsidiary Bharti Airtel International (Netherlands) on Saturday, said it will pre-pay a debt of $ 1.5 billion using proceeds from six global companies that invested in Africa.

Bharti Airtel International (Netherlands) B V purchased $ 5.1 billion in cash for a guaranteed 5.125% advance maturity, which was due in 2023, according to Bharti Airtel in a regulatory document.

The proposal was designed to "actively manage the capital structure, acquire Notes funded from gross revenues, and provide liquidity to shareholders at a premium to the market, thereby reducing total debt and leverage."

The Bharti Airtel group continues to utilize and pursue its strategy to achieve its goals.

"In conjunction with this, we have actively explored various major shareholder-centric initiatives, including those previously announced in Africa, to proactively manage the balance sheet and capital structure to meet the core conservative philosophy of the group.

Airtel Africa Ltd of Bharti Airtel Limited (Bharti Airtel Limited) in the UK, a subsidiary of Bharti Airtel Limited (Bharti Airtel Limited), recently awarded $ 1.25 billion to six key global investors, including Warburg Pincus, Temasek, Singtel, SoftBank Group and others. We carried out share stock issue.

"The proceeds of this issuance will be used to reduce Airtel Africa's existing debt of approximately $ 5 billion on the announcement day."

This issuance of shares is now fully realized and offered in cash. The company also has organic cash on its balance sheet.

"The Company intends to propose the purchase of all interest on the tender offer in order to reduce the existing publicly available borrowings using the proceeds of this tender offer and cash.

"Through the tender offer, the company is providing liquidity to its shareholders at a premium given the market price at launch."

The proposal is a repayment of the EUR 1 billion repayment amount, which expires in December 2018, with the previously announced tender offer.

Earlier this week, Moody's Investors Service downgraded Bharti Airtel's rating on expectations for low profitability and weak cash flow.

Moody 's reviewed senior unsecured debt ratings issued by Bharti Airtel' s Baa3 's issuer and senior unsecured ratings and Bharti Airtel International (Netherlands) B V.

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