Bharti Airtel Ltd .: Bharti Airtel International begins cash buying its $ 1.5 billion bond to reduce debt

Bharti Airtel announced on Saturday that it would prepay a $ 1.5 billion debt with its subsidiary Bharti Airtel International (Netherlands), using products from six global entities investing in its Africa unit.

Bharti Airtel International (Netherlands) B V began buying cash for $ 1.5 billion of 5.125 per cent senior secured notes due in 2023, Bharti Airtel said in a regulatory filing.

This offer, he said, was made for the purpose of "proactively managing its capital structure, reducing gross debt and leverage by acquiring notes financed with the proceeds of shares and to provide greater liquidity to the holders. "

The Bharti Airtel Group continues to deleverage and pursues its strategies in this direction, he added.

"In the same vein, he is actively exploring various equity initiatives, including those previously announced regarding his activities in Africa, to proactively manage his balance sheet and capital structure to align them with conservative philosophy. basic group, "That said.

Airtel Africa Ltd, the parent company of Bharti Airtel International (Netherlands), a British subsidiary of Bharti Airtel Limited, recently successfully completed a first equity offering of 1.25 billion USD to six major global investors, including Warburg Pincus, Temasek, Singtel and SoftBank group and others.

"The proceeds from this issue of shares should be used to reduce Airtel Africa's existing debt of approximately $ 5 billion as of the date of the announcement," the statement said .

The proceeds of this issue of shares are now fully realized and available in cash. The company also has organic cash on its balance sheet.

"The company wishes to use the proceeds of this issue of shares and the cash it has available to reduce its existing debt by offering to buy all or part of the tickets as part of the offer public purchase.

"As part of the public takeover bid, the company also provides liquidity to the noteholders at a price higher than the market price on the launch date," the document says.

This offer is in addition to the previously announced offer with repayment of 1 billion euro notes at 4% maturing in December 2018, for which funding has been withdrawn and available in cash at the company.

Earlier this week, Moody's Investors Service had placed Bharti Airtel's rating under control for the deterioration of low profitability and the expectation of weak cash flow.

Moody's reviewed Bharti Airtel and Bharti Airtel's senior unsecured ratings and unsecured senior unsecured notes issued by Bharti Airtel International (Netherlands) B V.