Bharti Telecom accepts Rs 11,150 cr bids for biggest bond issue of FY25

India's Bharti Telecom, the holding company of Bharti Airtel, has accepted bids worth an aggregate of Rs 11,150 crore ($1.33 billion) through its biggest-ever bond issue, three bankers said on Monday.

 

This is also the country's biggest corporate bond issue in the current financial year, surpassing State Bank of India's issue in July, where it had raised Rs 10,000 crore. 

The bond was largely subscribed by mutual funds, insurance companies, private credit funds and some foreign banks, with SBI Mutual Fund being the largest anchor investor, according to a term sheet viewed by Reuters. 

Barclays and Standard Chartered Bank were the arrangers for the bond issue. While Barclays declined to comment, Standard Chartered Bank was not available for comment. 

Bharti Telecom and SBI Mutual Fund did not immediately replied to a Reuters email for comment. 

"There was strong demand from the anchor investors in bidding as well, and most stock has been absorbed by them," one of the bankers with the knowledge of the matter said. 

The company raised funds through a six-part issue, which included Rs 2,000 crore each through three-year, and three-year and 10-day bonds; Rs 1,650 crore through four-year bonds; Rs 2,500 crore via five-year bonds, and Rs 1,500 crore each through seven-year and 10-year papers. 

It will pay an annual coupon of 8.65% on the three-year papers and 8.25% on three-year and 10-day bonds. It will offer a coupon of 8.75% each on four-year and five-year bonds, and 8.90% each for seven-year and 10-year bonds respectively. 

It had invited bids for the options earlier in the day, for what is its first bond issuance in nearly a year, the bankers said. 

The company had raised 80 billion rupees in December 2023 through the sale of two-year, three-year and five-year bonds.