Bharti Telecom accepts bids for biggest bond issue of FY25

Bharti Airtel bond issue: India's Bharti Telecom, holding company of Bharti Airtel, has accepted bids worth an aggregate of 111.50 billion rupees ($1.33 billion) through its biggest-ever bond issue, three bankers said on Monday. 

This is also country's biggest corporate bond issue in current financial year, surpassing State Bank of India's issue in July, where it had raised 100 billion rupees.

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

Barclays and Standard Chartered Bank were arrangers for bond issue. While Barclays declined to comment, Standard Chartered Bank was t available for comment.

Bharti Telecom and SBI Mutual Fund did t immediately reply to a Reuters email for comment.

"re was strong demand from anchor investors in bidding as well, and most stock has been absorbed by m," one of bankers with kwledge of matter said.

company raised funds through a six-part issue, which included 20 billion rupees each through three-year, three-year and 10-day bonds; 16.50 billion rupees through four-year bonds; 25 billion rupees via five-year bonds, and 15 billion rupees each through seven-year and 10-year papers.

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

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