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Bharti Airtel considers $7bn loan
09 March 2010
Indian operator Bharti Airtel is negotiating a loan so that it can buy most of Zain’s African businesses
Bharti Airtel is planning to raise $7 billion through a six-year US dollar loan, which carries an average maturity of 4.75 years. The proceeds will be used to finance the company’s acquisition of Zain’s African assets.
The Indian mobile phone operator, headed by Sunil Bharti Mittal, is looking to price the planned $7 billion loan at 225 basis points above the London interbank offered rate. The pricing is expected to be tighter than initial discussions. Funding talks started at about 300 basis points above Libor for a seven-year dollar loan.
The company could also raise an additional $2-$3 billion through a rupee loan. The telecom operator is in exclusive talks with Kuwait-based Zain until March 25 2010, to purchase all the African assets of Zain, excluding its operations in Morocco and Sudan. GTB
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