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Bharti Airtel board has given its nod for the company to raise up to ₹16,500 crore to refinance debt and pay for spectrum liabilities.
The board approved issuance of non-convertible debentures (NCDs) of up to ₹10,000 crore on a private placement basis. Such tranches/ series and at such rates may be approved from time to time on cumulative basis along with all NCDs issued by the company, it said.
Also, the board has approved issuance of foreign currency bonds up to a limit of $1 billion (around ₹6,500 crore) or equivalent in one or more tranches, Airtel said in a stock filing. The company will now approach shareholders for final approval of the proposed raising of debt. “Any funds if raised from the issuance of such debt securities would be used for routine treasury activities including refinancing of existing debt and spectrum liabilities,” the company said.
The earlier approval of the shareholders’ obtained for issuance of NCDs up to ₹10,000 crore is valid for a period of one year (that is March 13, 2018) and the company intends to obtain a fresh approval from shareholders, it added.
As on December 31, the Airtel’s consolidated net debt stood at ₹91,714 crore against ₹91,480 crore in the previous quarter.
Shares of Airtel closed at ₹420.75 on the BSE on Monday, up 4.68 per cent from the previous close.
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