Bharti Airtel Voluntarily Redeems $1 Billion in Perpetual Debt Securities and Prepays Additional High-Cost Liabilities

In a significant move to enhance its financial health, India's largest telecom operator Bharti Airtel has made two significant financial announcements today. The company voluntarily redeemed $1 billion perpetual debt securities and prepaid another Rs. 5,985 crores of high-cost spectrum dues.

 

The redemption of $1 billion USD Perpetual Notes was done by the subsidiary of Airtel, Network i2i Limited. The FY 2020-issued notes were at an interest rate of 5.65% and an uncontracted maturity. Airtel will have around $479 million of perpetual notes outstanding, issued in FY 2021, callable in FY 2026, after this redemption.

 

Simultaneously, Bharti Airtel and Bharti Hexacom Ltd., its subsidiary, prepaid Rs. 5,985 crores to the Department of Telecom. The prepayment settles Bharti Airtel's most expensive interest dues of 8.65% on 2024 spectrum auctions in its entirety. This is in line with Airtel's strategy of lowering its debt burden as well as its cost of debt.

 

With these recent prepayments, Airtel prepaid Rs. 25,981 crores of high-cost spectrum dues of the ongoing year 2025. Total prepaid spectrum dues of the company now stand at Rs. 66,665 crores. Weighted average rate of interest of the prepaid dues was around 9.74%.

 

Due to these fiscal maneuvers, Airtel has prepaid Rs. 116,405 crores of outstanding installments that would otherwise have been due during the original tenor of the obligations. The company has also been able to reduce its cost of debt on spectrum obligations to a weighted average of around 7.22% on the outstanding Rs. 52,000 crores of spectrum obligations (excluding the AGR obligations). These financial strategic choices reflect Airtel's emphasis on financial conservatism, discipline in operations, and having a robust position of capital. By proactively managing its debt and eliminating high-cost obligations, Airtel is setting itself up for increased financial flexibility and long-term growth in the competitive telecommunication industry.

 

Source: TechnuterIn a significant move to enhance its financial health, India's largest telecom operator Bharti Airtel has made two significant financial announcements today. The company voluntarily redeemed $1 billion perpetual debt securities and prepaid another Rs. 5,985 crores of high-cost spectrum dues.

In a significant move to enhance its financial health, India's largest telecom operator Bharti Airtel has made two significant financial announcements today. The company voluntarily redeemed $1 billion perpetual debt securities and prepaid another Rs. 5,985 crores of high-cost spectrum dues

 

The redemption of $1 billion USD Perpetual Notes was done by the subsidiary of Airtel, Network i2i Limited. The FY 2020-issued notes were at an interest rate of 5.65% and an uncontracted maturity. Airtel will have around $479 million of perpetual notes outstanding, issued in FY 2021, callable in FY 2026, after this redemption.

 

Simultaneously, Bharti Airtel and Bharti Hexacom Ltd., its subsidiary, prepaid Rs. 5,985 crores to the Department of Telecom. The prepayment settles Bharti Airtel's most expensive interest dues of 8.65% on 2024 spectrum auctions in its entirety. This is in line with Airtel's strategy of lowering its debt burden as well as its cost of debt.

 

With these recent prepayments, Airtel prepaid Rs. 25,981 crores of high-cost spectrum dues of the ongoing year 2025. Total prepaid spectrum dues of the company now stand at Rs. 66,665 crores. Weighted average rate of interest of the prepaid dues was around 9.74%.

 

Due to these fiscal maneuvers, Airtel has prepaid Rs. 116,405 crores of outstanding installments that would otherwise have been due during the original tenor of the obligations. The company has also been able to reduce its cost of debt on spectrum obligations to a weighted average of around 7.22% on the outstanding Rs. 52,000 crores of spectrum obligations (excluding the AGR obligations). These financial strategic choices reflect Airtel's emphasis on financial conservatism, discipline in operations, and having a robust position of capital. By proactively managing its debt and eliminating high-cost obligations, Airtel is setting itself up for increased financial flexibility and long-term growth in the competitive telecommunication industry.

 

Source: Technuter