“A benchmark size… USD denominated Guaranteed Subordinated Perpetual Securities by Network i2i Limited expected to be rated BB by both S&P and Fitch may follow, subject to market conditions,” the company said in a release.
The company has appointed investment bankers including BofA Merrill Lynch, Barclays, BNP PARIBAS, Citigroup, HSBC<\/a>, J.P. Morgan and Standard Chartered Bank, which will help them to raise the offshore money.
The will organise fixed income investor meetings\/calls across Asia, Europe and the United States commencing October 2 this year.
Earlier in the day ET reported that Bharti Airtel planned to raise about $750 million (about Rs 5,300 crore) through the sale of overseas bonds<\/a> to refinance debt and free up cash to invest in expanding its 4G network as well as prepare for the next spectrum auction, scheduled for early 2020, said three people familiar with the matter. The sum may go up to $1 billion (Rs 7,000 crore) depending on investor response.
The so-called perpetual bonds are a quasi-equity obligation without a fixed maturity, said one of the persons. The securities, which will be sold to investors across the world, are known as 144A bonds that allow the participation of those in the US as well. “The bonds will carry five-year non-call — that means the debt cannot be repaid before five years,” said the person.
Roadshows for the fundraising plan are set to begin this week.
The bonds may be priced in the range of 5.75-6.10%, dealers said.
Networki2i, Airtel’s Mauritius subsidiary, will be the official borrower and is expected to issue the bonds.
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