This exercise to raise funds on behalf of Airtel will not only strengthen its expansion but will also help to compete with competitor Reliance Jio.
Fund raising from abroad by Bharti Airtel has got the support of many global investors. Several funds have offered investments for the company’s $ 1.25 billion bond issue. Many global investors, including Goldman Sachs Asset Management, Fidelity, Blackrock, TIAA, Loomis Seyles, Nan Shan Life, Ashmore Investment and Amundi Asset Management, have shown interest in buying bonds. Airtel can raise funds through senior and perpetual bonds.
Funds raised from bonds will be spent on debt repayment and capital expenditure
Airtel says that the funds raised through bonds will be used for capital expenditure and debt payments. Actually Airtel is raising funds to participate in the upcoming 4G spectrum auction. Apart from this, it is also raising funds for its network and making necessary payments.
Preparing to launch 5G will also get power
It is being said that this is the biggest fund raising exercise by any investment grade bond issuer in India after January 2019. The company has said that the interest of top-class foreign investors in its bonds shows its strength in business.
Earlier, Airtel had tied up with Qualcomm Technologies to launch 5G in India. Airtel and Qualcomm together will form a 5G fixed wireless access network. After this the home internet network will also be upgraded. Under this, broadband infrastructure will be upgraded to give Gigabit class home Wi-Fi network.
Some time ago Airtel gave a demo of 5G live commercial network in Hyderabad. Airtel is the first company in the country to do so. Now Airtel is working with Qualcomm to increase the scope of this service.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.