Bharti Airtel to rise to US$3 billion via bonds, shares

Bharti Airtel Ltd. said on Wednesday it would rise to US$3 billion via debt and equity, as it looks for ways to pay down overdue fees, it owes to the government.
 Last month, Airtel and its industry peer, Vodafone Idea Ltd., had warned that their ability to operate and make profits would depend on the relief from the government. This statement came after the Indian Supreme Court upheld a demand of the telecom department regarding the payment of overdue levies and interest by wireless carriers.
Airtel said here it will raise US$2 billion via qualified institutional placement and US$1 billion via bonds and debentures. Vodafone Idea Ltd. and Bharti Airtel will have to pay the majority of the US$13 billion they owed. Both the companies have approached the court to review the October ruling.
Indian mobile carriers needed to pay at least US$13 billion in dues to the state till January 2020, according to a court ruling in October this year. However, the sector got some relief when the government allowed mobile operators to defer upcoming spectrum payments for the next two financial years until March 2022.
Both carriers have thereby raised tariffs of some call and data services.
This fundraising will help Airtel tide over the liquidity requirement.
Airtel reported a consolidated net loss of ₹ 230.45 billion (US$3.21 billion) for the September quarter after it made a provision for dues, it owed to the government.
Airtel has ₹ 1.18 trillion (US$16.44 billion) in debt. It is also under pressure to gain market share after the entry of Reliance Jio Infocomm Ltd., owned by Mukesh Ambani, India’s richest man. This triggered a price war in the sector.