New Delhi, (Asian independent) Bharti Airtel said on Thursday that it has successfully priced its debt fund raise of $1.25 billion through the issuance of its first ever dual-tranche dollar bond offering spread across senior and perpetual issuance.
This is the largest issuance by any Indian Investment Grade issuer since January 2019, the company said in a regulatory filing.
“Airtel has priced $750 million of senior 10.25-year bonds at a yield of US 10 Year Treasury + 187.5bps for an implied coupon of 3.250 per cent. Simultaneously, Network i2i Limited, a wholly owned subsidiary of the company priced $500 million in guaranteed subordinated perpetual NC 5.25 year bonds with a coupon of 3.975 per cent,” it said.
The company said that the offering was significantly oversubscribed with very strong demand from several marquee Asian, European and American funds.
The peak order book of over $5 billion at the time of final price guidance allowed the pricing to tighten significantly from Initial Price Guidance (IPG) on both tranches and allowed the company to meet its pricing as well as size objectives.
The senior 10.25 year tranche was launched at IPG of 230 bps over 10 year US Treasuries and eventually tightened by 42.5 bps to price at ’10 year US Treasury + 187.5 bps’.
“Similarly, the perpetual NC 5.25 tightened by 37.5bps from its initial price guidance,” the filing said.