Bharti Airtel (Airtel) on Thursday said it has successfully priced its debt fund raise of $1.25 billion through the issuance of its first ever dual-tranche dollar bond offering spread across senior and perpetual issuance.

This is the largest issuance by any Indian Investment Grade issuer since January 2019.

Airtel has priced $750 million of senior 10.25 year bonds at a yield of US 10 Year Treasury + 187.5bps for an implied coupon of 3.250 per cent.

Simultaneously, Network i2i Limited, a wholly owned subsidiary of the company priced $500 million in guaranteed subordinated perpetual NC 5.25 year bonds with a coupon of 3.975 per cent, the company said in a statement.

This is a lowest ever yield on 10 year and Perpetual bonds for Bharti Airtel.

“The strong reception of both our senior and perpetual bonds by high quality global investor community reflects its confidence in our business and credit. We remain focused on keeping our balance sheet strong and these issuances further bolster our capital structure,” Ashish Sardana - Group Treasurer, Bharti Airtel said.

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The offering was significantly oversubscribed with strong demand from several marquee Asian, European and American funds. The peak order book of over $5 billion at the time of final price guidance allowed the pricing to tighten significantly from Initial Price Guidance (IPG) on both tranches and allowed the company to meet its pricing as well as size objectives, Airtel said.

The senior 10.25 year tranche was launched at IPG of 230bps over 10 year US Treasuries and eventually tightened by 42.5bps to price at 10 year US Treasury + 187.5bps. Similarly, the Perpetual NC 5.25 tightened by 37.5bps from its initial price guidance, it said.

The transaction is subject to customary closing formalities, Airtel said.

Barclays, BNP Paribas, BofA Securities, Citigroup, HSBC, J P Morgan and Standard Chartered Bank acted as Joint Lead Managers and Joint Bookrunners, while DBS Bank Ltd and SMBC Nikko were the Co-Managers on the trade.

The Legal Advisors to the company were Linklaters Singapore Pte Ltd and the Legal Advisors to the lead managers were Cyril Amarchand Mangaldas & Co and Latham & Watkins LLP. Deloitte Haskins & Sells LLP Chartered Accountants is the Statutory Auditors of the company, Airtel added.

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