Bharti Airtel rose 0.33% to Rs 393.75 at 9:25 IST on BSE after the company said that it has received financing commitments of up to $2.5 billion from China Development Bank and Industrial and Commercial Bank of China.
The announcement was made on Saturday, 16 May 2015.
Meanwhile, the S&P BSE Sensex was up 96.97 points or 0.35% at 27,405.50.
On BSE, so far 4,664 shares were traded in the counter as against average daily volume of 3.59 lakh shares in the past two weeks.
The stock hit a high of Rs 395.55 and a low of Rs 393 so far during the day.
Bharti Airtel signed the term sheets for the financing options in the presence of Prime Minister of India, Narendra Modi, who was on an official visit to China. Subject to final agreements and requisite approvals, Bharti Airtel can draw these funds over a long availability period, depending on its financing requirements. China Development Bank has committed financing of up to $2 Billion with an average maturity of about nine years. This is the single largest bilateral commitment by China Development Bank to any telecom operator globally and the largest bilateral commitment to a private Indian company. Industrial and Commercial Bank of China has committed $500 million with an average life of about nine years, making it the largest and longest bilateral commitment to an Indian telecom operator. These financing options will allow the company to diversify its global financing pool and access funds to invest in the growth of data networks across its global operations.
In March 2015, Bharti Airtel had announced a strategic collaboration with China Mobile, under which, the two companies will work towards the growth of the LTE ecosystem and evolving mobile technology standards. Bharti Airtel also has network equipment sourcing agreements with ZTE and Huawei. These financings further compliment the strong collaboration with Chinese partners, Bharti Airtel said in a statement.
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