To fund AGR dues, Bharti Airtel board approves $4-b fund-raise

Rajesh Kurup Mumbai | Updated on December 04, 2019 Published on December 04, 2019

Airtel has provided for an additional charge totalling ₹28,450 crore.   -  REUTERS

The Bharti Airtel  board on Wednesday approved the raising of $4 billion through equity dilution and debt funding, subject to the approval of shareholders and other regulatory approvals. The proceeds will be mainly used to fund its adjusted gross revenue (AGR) dues, sources told BusinessLine.

The company said in a regulatory filing it will raise $2 billion through “one or more” QIP, public and/or private offerings of equity shares, compulsory convertible debentures and other convertible securities/warrants/ADR/GDR or a combination thereof.”

It also cleared the issuance of “unsecured and/or secured” FCCBs or other similar “security denominated in foreign currency (ies) or combination thereof,” in one or more tranches on a private placement basis, aggregating $1 billion. Additionally, it approved the issuance of redeemable non-convertible debentures along with warrants or other similar security in one or more tranches for an aggregate amount of up to $1 billion on a private placement basis or otherwise. The overall issuance under the last two categories will be $1 billion, it added.

The telco has already raised close to $10 billion over the past year, including the funds raised during the pre-IPO and post-IPO of Airtel Africa totalling around $2.5 billion, and the recent rights offer of around $3.5 billion.


AGR dues

On November 30, banking sources had told BusinessLine that Airtel was planning to raise $3 billion, which, along with internal accruals, would be needed to pay AGR dues.

For the second quarter, Airtel had posted a net loss of ₹23,045 crore, its highest-ever loss, mainly on account of provisioning for AGR payouts.


Funding instruments

a) $2 billion via QIP, public/private share offer, compulsory convertible debentures, ADR and GDR

b) $1 billion via FCCB issue

c) $1 billion via redeemable non-convertible debentures along with warrants. Overall issuance under (b) and (c) shall be $1 billion




Published on December 04, 2019
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