Singtel's Bharti Airtel launches $1.35b foreign currency convertible bonds

It was opened after the Indian Government charged $6.62b in unpaid dues.

Singtel’s India-based associate Bharti Airtel has opened the issuing of foreign currency convertible bonds (FCCBs) for an aggregate amount of $1.35b (US$1b), the company announced.

According to Fitch Ratings, Bharti will use the proceeds to fund its capex or to refinance its debt. India’s Supreme Court ruled that the incumbent telcos in India pay billions in unpaid dues on licence fees and spectrum usage charges to the government before 24 January. Bharti Airtel will pay $6.62b (US$4.9b).

Together with its approved qualified institutions placement of equity shares for an aggregate amount of $2.7b (US$2b) (equivalent currency), the company is planning to raise $4.05b (US$3b).

The government’s demand for unpaid dues referred to a 14-year-old dispute about the definition of adjusted gross revenue (AGR), Fitch Ratings added. The Supreme Court agreed that it should include all kinds of income generated by the telcos.