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Bharti Telecom, the holding company of Bharti Airtel, on Monday raised Rs 11,150 crore in six tranches, with coupon rates ranging from 8.25-8.90 per cent and tenors from 3-10 years.
According to the term sheet, the company secured Rs 2,000 crore at 8.65 per cent, with a tenor of three years; Rs 1,650 crore at 8.75 per cent, with a tenor of four years; Rs 2,500 crore at 8.75 per cent, with a tenor of five years; Rs 1,500 crore at 8.90 per cent, with a tenor of seven years; Rs 1,500 crore at 8.90 per cent, with a tenor of 10 years; and Rs 2,000 crore at 8.25 per cent, with a tenor of three years and 10 days.
Of the Rs 11,150 crore issuance, Rs 3,345 crore was subscribed by anchor investors, and Rs 7,805 crore was the non-anchor portion.
Barclays and Standard Chartered Bank were the arrangers for the bond issue. Bharti Telecom will use the proceeds for investing and paying transaction-related costs in connection with such investments.
“Bharti Telecom issuance across multiple tranches has demonstrated strong investor demand, particularly from mutual funds. This solid interest, spanning across tenors, highlights the confidence of domestic investors in India’s growth story, as they remain resilient and focused on long-term prospects despite global yield fluctuations,” said Venkatakrishnan Srinivasan, founder & managing partner, Rockfort Fincap LLP.
REC looking to raise Rs 6,500 crore this week
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State-owned REC Ltd. is looking to raise Rs 6,500 crore in two tranches, with varying tenors, this week from the domestic debt capital market, sources said. REC is inviting bids for the bond issuance on November 6 and the allotment will be made on November 8.
The first tranche of REC is of Rs 3,000 crore, with Rs 500 crore as the base issue and Rs 2,500 crore as the green shoe option. The bonds will have a tenor of 15 years and 22 days, and are expected to mature in November 2039. The bonds are rated “AAA” by domestic rating agency CRISIL, Icra, and CARE Ratings.
Additionally, the state-owned lender will raise Rs 3,500 crore, comprising a base issue of Rs 600 crore and a green shoe option of Rs 2,900 crore. The bonds will have a tenor of five years, five months and 22 days, maturing on April 30, 2030.
Market participants expect the coupon rate to be anywhere between 7.15 per cent and 7.35 per cent, given REC is a rare issuer and is a state-owned entity.
The demand for 15-year paper is expected to be significant, said a dealer at a state-owned bank.
“REC has been actively raising funds through the domestic bond market to support its large borrowing programme for FY25. Ahead of their upcoming issuance on November 6, the bond market expects the cut-off pricing to be between 7.20 per cent and 7.35 per cent, contingent on the tenor, secondary market levels during the time of the issuance, and size of the issue,” Srinivasan said.
“However, upward pressure on Indian bond yields has been evident due to continuous FPI outflows since October, driven by uncertainties around the US elections and rising US Treasury yields. This external environment poses potential indirect impacts on domestic corporate bond yields,” he added.
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