Bharti Airtel issues Rs 19,400 cr guarantee to Netherlands arm

Bharti Airtel manages Africa operation through Bharti Airtel International Netherlands B.V. The entire stake of Zain Africa was transferred to the Netherlands based holding company on March 30,2010 for USD 9 billion.

Sources said that guarantee is related to recent bonds issued by Bharti Airtel International Netherlands.

As per RBI data for Indian companies8217; overseas direct investments for April 2013,Bharti Airtel issued guarantees worth USD 3,352 million to Bharti Airtel International Netherlands B.V.

In the last quarter of financial year 2012-13,Bharti Airtel International Netherlands raised USD 1.5 billion through a dollar bond issue spread over 10-years at coupon

rate of 5.125 per cent.

The bonds were listed on stock exchange in Singapore.

An amount of USD 1 billion was utilised towards retirement of existing debts before March 31,2013,while the second tranche of USD 0.5 billion was utilised for retiring existing debt post March 31,2013.