Singtel Group has confirmed that it will participate in the fundraising drive announced by its Indian subsidiary Bharti Airtel earlier this week, which aims to raise INR320 billion (USD4.5 billion) through equity and bond sales. Reuters writes that the Singaporean company will spend around USD525 million to buy 170 million new shares in the operator, diluting its effective interest in the firm to 35.2% from 39.5%. CEO of Singtel’s International Group Arthur Lang was quoted as saying: ‘Our participation in this rights offering … reflects our long-standing commitment to Airtel and the confidence in the future of the Indian market’.
As previously reported by TeleGeography’s CommsUpdate, Airtel is planning to raise a total of INR320 billion to repay a portion of its INR1.15 trillion debt pile. Airtel plans to generate INR250 billion through a rights issue whilst the remaining INR70 billion would be raised via foreign currency perpetual bonds.