Mittals looking to raise $2 bn to buy portion of Singtel stake in Airtel

As per a media report, Mittals are in talks with some major banks like BNP Paribas, Bank of America, Citibank, JPMorgan, and Standard Chartered to raise over $2 billion

Sunil Mittal
Sunil Mittal, Bharti Airtel, Chairman | Photo: WEF
BS Web TeamAgencies New Delhi
2 min read Last Updated : Jun 02 2022 | 12:44 PM IST
The Mittal family is in talks with several investment banks, via promoter entities, to raise Rs 15,500 crore through onshore/offshore credit lines, according to a report in Economic Times. The money will be used to buy a portion of Singapore Telecommunications' (Singtel's) holding in Bharti Airtel.

As ET reported, Mittals are in talks with some major banks like BNP Paribas, Bank of America, Citibank, JPMorgan, and Standard Chartered to raise over $2 billion.

Mittals and Singtel own 50.56 per cent and 49.44 per cent, respectively, of Bharti Telecom. Bharti Telecom holds 35.85 per cent stake in Bharti Airtel. 

In addition to this, Singtel and the Mittal family directly hold 14 per cent and 6.04 per cent, respectively, in Bharti Airtel through investment firms. In totality, the Mittal family holds 24.13 per cent in Bharti Airtel, while Singtel owns 31.72 per cent.

Singtel has been a stakeholder in Bharti Airtel since 2000. 

In late May, Moody's Investors Service upgraded Bharti Airtel's rating to Baa3, citing continued strengthening of its operational metrics as well as stabilisation of the financial profile. It has withdrawn the company's Ba1 corporate family rating. Moody's has also changed the outlook for the company to stable from positive.

Bharti's Baa3 rating considers the company's position as one of the largest telecom service operators globally in terms of subscribers (491 million), its solid market position in India's high-growth mobile market and its large spectrum holdings, a statement by Moody's said.

The company had posted more than two-fold jump in consolidated net profit for March quarter 2021-22 to Rs 2,008 crore, buoyed by a lift in average revenue per user and an exceptional gain.

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Topics :Bharti AirtelSunil MittalSingtelBank of AmericaBNP ParibasCitibankJPMorganStandard Chartered

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