Bharti Airtel’s Euro 750 million bond oversubscribed 5x

Bharti Airtel today announced that its wholly-owned subsidiary Bharti Airtel International (Netherlands) BV EUR 750 million bond issue was oversubscribed more than 5x with participation from 370 high quality accounts.

Bharti Airtel International (Netherlands) BV has priced EUR 750 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 over EUR 3.8 billion from high quality investor accounts.

The key transaction highlights include: 1st ever EUR bond issuance by an Indian Corporate; 1st ever EUR bond issuance by an Emerging Market Telecom Corporate; Largest EUR offering by an Asia-ex-Japan issuer since the start of the tapering concerns in May 2013; Transaction priced well inside of a new 5 Year USD level interpolated from the trading levels of Bharti’s outstanding USD bonds; Highest ever allocation to Fund managers (77%) for an Indian Issuer demonstrating the strength and quality of Bharti’s credit; Order book oversubscribed over 5x with participation from over 370 investor accounts; and One of the largest order-book for an inaugural EUR issuance out of Asia.

This benchmark transaction introduces the Indian corporate credit to the Investment Grade EUR bond market and paves the way for other Indian corporate issuers to access the IG Bond market in Euros.

The Notes have been priced at 300 basis points over the 5-year EUR Mid Swap with a fixed coupon of 4 percent per annum to yield 4.055 percent. Bharti will apply the net proceeds to refinance its existing debt.

Harjeet Kohli, group treasurer, Bharti said, “It is heartening to be the first Indian Corporate to access the European IG credit market. The overwhelming response from investors across Europe for this inaugural issue highlights the strength of our credit. This transaction helps us continue to diversify sources of funding and the EUR financing also acts as a natural hedge to many of our African businesses where local currency is pegged to Euros.”

In terms of geographic distribution, the Notes were distributed 38 percent in UK, 18 percent in Germany and Austria, 35 percent collectively in France, Switzerland, Scandinavia and Netherlands and other European countries and 9 percent in Asia. The Notes were distributed to the following high quality fixed income accounts: 77 percent to fund managers, 9 percent to SSA/Insurance, 9 percent to private banks and 5 percent to 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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