India’s Bharti Telecom, the holding company of Bharti Airtel, will launch the largest bond sale of the current fiscal year next week, aiming to raise funds at significantly lower rates than last year, according to three merchant bankers.
The company is looking to raise ₹15000 crore ($1.7 billion) through the sale of bonds maturing in two years and in three years and two months.
It will pay an annual coupon of 7.35% and 7.45% on these issues, respectively, the bankers added.
Mutual funds are likely to be big buyers of the bonds, said one of the bankers, adding that there was interest from some foreign banks and private banks as well.
The bankers requested anonymity as they are not authorised to speak to media. The company did not reply to a Reuters email sent on Thursday seeking a response.
This would be the cheapest bond fundraising for the company in four years.
A 100 basis-point cut in the Reserve Bank of India’s policy rate in 2025, and an upgrade of the company’s existing bonds to the highest-grade rating of AAA by CRISIL Ratings has helped bring down costs for the company.
Biggest bond issue of 2025
If successful, it would be the biggest bond issue of this year. In November 2024, it had raised ₹11,150 crore through the sale of bonds.
“While majority of the funding will go for refinancing, the company will use a sufficient chunk for capex,” the banker said.
The firm has debt securities worth ₹9750 crore that are due to mature in November-December. It also has bonds worth ₹16,150 crore that will mature between 2027-2034.
