Bharti Airtel Receives Bilateral Financing Commitments of up to USD 2.5 Billion from China Development Bank and Industrial and Commercial Bank of China
To help the Company further diversify its global financing pool and invest in growth of data networks
- China Development Bank commits USD 2 Billion credit line, which is its single largest bilateral commitment to an Indian company and the largest to any telecom operator globally.
- Industrial and Commercial Bank of China offers USD 500 Million credit line, which is its single largest bilateral commitment to any telecom operator in India.
- At about nine-years in average maturity, these will be the longest bilateral commitments in India by the two banks.
- Transactions subject to requisite approvals, as applicable, including RBI approvals.
New Delhi, May 16, 2015: Bharti Airtel Limited (“Bharti Airtel”; “the Company”), a leading global telecommunications services provider with operations in 20 countries across Asia and Africa, today said that it has received financing commitments of up to USD 2.5 Billion from China Development Bank and Industrial and Commercial Bank of China.
The Company signed the term sheets for the financing options in the presence of Hon’ble Prime Minister of India, Shri Narendra Modi, who is currently on an official visit to China. Subject to final agreements and requisite approvals, Bharti Airtel can draw these funds over a long availability period, depending on its financing requirements.
China Development Bank has committed financing of up to USD 2 Billion with an average maturity of about nine years. This is the single largest bilateral commitment by China Development Bank to any telecom operator globally and the largest bilateral commitment to a private Indian company. Industrial and Commercial Bank of China has committed USD 500 million with an average life of about nine years, making it the largest and longest bilateral commitment to an Indian telecom operator.
These financing options will allow the Company to diversify its global financing pool and access funds to invest in the growth of data networks across its global operations.
Mr. Rajan Bharti Mittal, Vice Chairman, Bharti Enterprises said, “We are pleased to sign these agreements as part of the growing economic cooperation between India and China. It is an endorsement of the long term potential of the Indian telecom sector. Given the availability period of three years, these financings shall further add to the financial flexibility that the Company already has. These shall further extend tenors, enabling investments for furtherance of the Digital India initiative.”
In March 2015, Bharti Airtel had announced a strategic collaboration with China Mobile, under which, the two companies will work towards the growth of the LTE ecosystem and evolving mobile technology standards. Bharti Airtel also has network equipment sourcing agreements with ZTE and Huawei. These financings further compliment the strong collaboration with Chinese partners.
About Bharti Airtel
Bharti Airtel Limited is a leading global telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 4 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G and 4G wireless services and mobile commerce. Bharti Airtel had over 324 million customers across its operations at the end of March 2015. To know more please visit, www.airtel.com