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Bharti Airtel Ltd has received financing commitments of up to $2.5-billion from China Development Bank and Industrial and Commercial Bank of China.
The financing will help the telecom company with its aggressive plans to roll out the 4G network across the country ahead of the launch by Reliance Jio. Airtel also faces a large pay-out for spectrum. Over the last year the operator has raised money through stake sale and through bonds.
The company signed the term sheets for the financing options with the Chinese banks in the presence of Prime Minister Narendra Modi, who is currently on an official visit to China.
Subject to final agreements and requisite approvals, Bharti Airtel can draw these funds over a long availability period, depending on its financing requirements.
China Development Bank has committed financing of up to $2 billion with an average maturity of about nine years. This is the single largest bilateral commitment by China Development Bank to any telecom operator globally and the largest bilateral commitment to a private Indian company.
Industrial and Commercial Bank of China has committed $500 million with an average life of about nine years.
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