Bharti Airtel received $9.5 billion investment interest from global investors for its $1-billion bond issue that the company concluded on Tuesday.
The company retained $1-billion subscription through issue of 10-year dollar bonds,the largest mop up by a private company in 2013,according to merchant bankers.
The 10-year unsecured bonds will pay a coupon of 5.125 per cent per annum and were issued by Bharti Airtel International (The Netherlands),a wholly-owned subsidiary of the company.
With this,the Sunil Mittal-promoted Bharti becomes the largest private sector borrower from global bond market in 2013 after Reliance Industries $800-million perpetual bond sale in January.
In its maiden bond issue,the telecom company received the highest subscription from fund managers who picked up 67 per cent of the issue. Private investment banks subscribed to 19 per cent of the issue,and banks bought 8 per cent.
Geography-wise,investment from Asia was the highest at 35 per cent followed by the US at 34 per cent. European investors subscribed to 31 per cent of the bond issue.
Bharti had launched roadshows in Asia,Europe and the US for these unsecured senior bonds last week and had appointed seven foreign banks as arrangers. Barclays,BNP Paribas,Citi,Deutsche Bank,HSBC,StanChart and UBS were the arrangers.
The company had earlier decided to raise funds through a bond issue in 2011,but cancelled such plans due to high yields.
Given the success of Bharti,more private companies could access overseas market for fund-raising in the coming months,merchant bankers said.
So far in 2013,RIL,Power Grid,Tata Communications,ICICI Bank and HDFC Bank among others have raised $3.25 billion from overseas bond market. In December quarter,Bharti had a total debt of $13.6 billion and cash and equivalents of $1.9 billion. FE