Airtel Board Gives Nod To Raise Up To Rs 7,500 Cr Through Debt Instruments

Airtel said its board reviewed the company’s routine financing and re-financing strategies, including any market maturities in due course

Airtel had last month announced that Google will invest around $1 billion in the firm for picking up a 1.28 per cent stake. Image: Getty

New Delhi: Telecom major Bharti Airtel’s board has given an approval for raising up to Rs 7,500 crore through debt instruments.

The telco had last month announced that Google will invest around $1 billion in the firm for picking up a 1.28 per cent stake and scaling up offerings of India’s second-largest mobile phone operator.

Over the past few months, telecom operators have been adding more firepower to their arsenal, as the market gears up for roll-out of 5G services that will usher in ultra-high speeds and spawn new-age services and business models.

In a regulatory filing, Airtel said its board reviewed the company’s routine financing and re-financing strategies, including any market maturities in due course.

It has “granted enabling approvals for such re-financing vide debt instruments (as and when deemed appropriate) through issuance of secured/ unsecured, listed/unlisted non-convertible debt securities including debentures, bonds etc. upto Rs 7,500 crores (or in equivalent foreign currency) in one or more tranches from time to time...subject to all applicable regulatory/ statutory approvals,” the company said.

Airtel, the second largest telecom operator in the lucrative Indian market, said its board has also authorised the Special Committee of Directors to decide (based on market conditions) on all matters related to such issuance of securities, including finalisation and approval of terms and conditions, quantum of tranche, and the timing.

The company on Tuesday logged 3 per cent fall in its consolidated net profit to Rs 830 crore for the third quarter (Q3) ended December 2021.

Airtel had recorded a net profit of Rs 854 crore in the same period a year ago.

The consolidated revenue of Airtel rose by 12.6 per cent to Rs 29,867 crore from Rs 26,518 crore in the December 2020 quarter.

The telco reported a 12.6 per cent rise in third-quarter revenue, helped by recent tariff hikes and addition in subscribers.