Bharti Airtel issues EUR 250 mn bond

Bharti Airtel has announced that its wholly-owned subsidiary Bharti Airtel International (Netherlands) BV in a follow on tap has priced EUR 250 million 4 percent Guaranteed Senior Notes due 2018.

The Notes will be fully and unconditionally guaranteed by Bharti Airtel.

The Notes attracted huge investor interest with an order-book aggregating circa EUR 600 million from high quality investor accounts. The key transaction highlights include: First foreign currency bond issuance out of Indian in 2014 opening the market for Indian Issuers; First ever EURO tap issuance by an Indian issuer; Largest EUR bond issuance out of India of Eur 1 Billion, including the tap; Tap transaction was priced 25 bps inside of the original deal priced in December 2013; and 87% of allocation to real money fund managers.

The success of tap on the existing bond emphasizes the continuing and strong belief of the investor community in Bharti’s credit. Bharti had earlier in December 2013, raised EUR 750 Million in an inaugural benchmark Euro issuance.

The Notes have been priced at 275 basis points over the curve adjusted 5-year EUR Mid Swap with a fixed coupon of 4 percent per annum. Bharti will fully apply the net proceeds to refinance its existing debt.

Harjeet Kohli, group treasurer, Bharti said, “We are delighted with the response in the Euro debt markets for Bharti Airtel. Across tenors and markets, Airtel now has $1.5 bn in the USD bond markets and Euro 1 bn in the Euro bond markets. These issuances have much diversified our sources of funding, currencies and investor base. The pricing and appetite represent the strong demand for a robust and internationally diversified Investment Grade credit like Bharti Airtel.”

In terms of geographic distribution, 51 percent of subscriptions were from UK, 16 percent from France, 12 percent from Netherlands, 19 percent from other European countries and 2 percent from Asia. 87 percent of the allocations were made to real money fund managers, 10 percent to SSA/Insurance and 3percent to private banks.

Barclays, BNP, DB, JP Morgan, Standard Chartered and UBS acted as joint bookrunners and joint lead managers on the offering.

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