India's largest telecom operator Bharti Airtel on Wednesday said its committee of directors has approved the allotment of 30,000 debentures for raising about Rs3,000 crore via private placement.
The Sunil Mittal promoted company, which is engaged in a fierce tariff war to safeguard its turf in the Indian telecom market, said the proceeds of the issue will be utilised for debt refinancing and spectrum liabilities.
“Within the authority of the special resolution passed by the shareholders of the company through postal ballot on March 14, 2017, the committee of directors has approved the allotment of 30,000 listed, unsecured, rated, redeemable, non-convertible debentures of face value Rs10 lakh each, at par aggregating to Rs3,000 crore on private placement basis,” the company said in a BSE filing.
This will be allotted via two series or tranches of Rs1,500 crore each, it added. The two series — Series I and II — will carry a coupon of 8.25 per cent per annum payable annually, and 8.35 per cent, per annum payable annually, respectively.
The proceeds of the issue would be used for general corporate purpose including routine treasury activities and refinancing of existing debt and spectrum liabilities, the company added.