Amid threats of downgrade ratings, Bharti Airtel limited signs for $2 billion loans from banks, as India’s second-biggest wireless company is facing increased competition in India.
Founder and chairmen of Bharti Airtel, Sunil Bharti Mittal has agreed to take two and three-year bilateral loans, and has agreed to have 10 to 12 lenders too.
Moody’s Investors Services has on November 8, put Bharti’s Baa3 rating on review, which was marked as the lowest investment-grade evaluation, for downgrade, which has cited its lowest level of profitability and the highest level of debts to fund capital.
Since the billionaire Mukesh Ambani’s Reliance Jio Infocomm limited continues to be the first-biggest wireless company providing with free services from 2016, a price war has worsened even more for Indian customers.
Due to the confusion formed in emerging market, Bharti delayed the plans of his Africa unit for an “initial public offering”.
About 110-120 basis point over London interbank offered rate, is the Bharti’s dollar loan, including upfront fees for the upcoming deal and margin.
However, now Bharti Airtel International (Netherlands) has signed for 10 lenders and for a separate bilateral loan over $2 billion.