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Bharti Airtel hits global bond market for third time this year: report

Bharti Airtel hits global bond market for third time this year: report

Bharti Airtel, India's largest telecom firm, on Tuesday hit the international market with a benchmark euro bond offering, according to merchant bankers.

The company is offering the five-year euro bonds for investors and the money is being raised through its wholly-owned subsidiary - Bharti Airtel International (Netheralnds) BV, sources told PTI.

It had conducted road shows for the bond sale - for the third time this year - last week in London, Paris, Amsterdam and Frankfurt. Merchant bankers had last week said the company is mulling to raise over $1 billion through bond sales, ahead of the spectrum auction slated next month.

Bharti could not be reached immediately for comments.

This is the third major bond sale by domestic companies after the May 24 tapering talk by the US Fed, which spiked interest rates in western markets.

The company's arm Bharti Airtel International Netherlands is raising the money, which will be fully guaranteed by the parent company.

According to one I-banker, StanChart, Barclays, JP Morgan, UBS and BNP Paribas are the joint book-runners and lead managers to the issue.

In March this year, the company had raised $1.5 billion in overseas debt in two tranches.

Meanwhile, Fitch Ratings has assigned an expected rating of  'BBB-' rating to the senior unsecured euro notes proposed by Bharti Airtel International Netherlands.

The notes will be unconditionally and irrevocably guaranteed by Bharti Airtel, and are therefore rated at the same level as Bharti's foreign currency senior unsecured rating of 'BBB-', the rating agency said in a statement issued from Singapore on Tuesday.

So far this year, companies have mopped up over $14.25 billion in overseas debt, with the latest being the  $500 million issuance by HDFC Bank in October and $750 million by ICICI Bank earlier this month.