This will be allotted via two series or tranches of Rs 15 billion each
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 Rs 10 lakh (1 million) each, at par aggregating to Rs 3,000 crore (30 billion) on private placement basis,” the company said in a BSE filing.
This will be allotted via two series or tranches of Rs 1,500 crore ( 15 billion) 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.
As on December 31, 2017, the company’s consolidated net debt stood at Rs 917.14 billion higher than Rs 914.8 billion in the previous quarter.
Earlier this week, the company said that it has received approval from the board to raise up to Rs 165 billion for refinancing debt and paying for spectrum liabilities.
The board of the company approved “issuance of non-convertible debentures (NCDs) of up to Rs 10,000 crore (100 billion) on a private placement basis” and “issuance of foreign currency bonds up to a limit of USD 1 billion or equivalent in one or more tranches”, Airtel had said in a regulatory filing on March 12.
The NCDs of up to Rs 10,000 crore (100 billion) can be raised in tranches or a series at rates may be approved from time to time, it had stated.
First Published: Wed, March 14 2018. 23:10 IST