Bharti Airtel Prepays Additional Rs 5,985 Crore of High-Cost Spectrum Liabilities to Government
Bharti Airtel has announced a significant prepayment of Rs 5,985 crore to the Department of Telecom, alongside its subsidiary Bharti Hexacom Ltd.
New Delhi: Bharti Airtel has announced a significant prepayment of Rs 5,985 crore to the Department of Telecom, alongside its subsidiary Bharti Hexacom Ltd. This prepayment fully clears the high-cost interest liabilities of 8.65 percent that were associated with the 2024 auctions.
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Airtel’s Subsidiary Network i2i Ltd. Redeems $1 Billion in Perpetual Notes
Airtel’s subsidiary, Network i2i Ltd., has also voluntarily redeemed $1 billion in Perpetual Notes, according to a statement from the company. This marks a major step in the company’s ongoing efforts to reduce its liabilities.
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Airtel’s Cumulative Prepayment of Spectrum Liabilities
Airtel further revealed that it has now prepaid a total of Rs 25,981 crore in high-cost spectrum liabilities for the 2025 fiscal year. The total spectrum liabilities prepaid by the company to date stand at Rs 66,665 crore.
The cumulative liabilities have been prepaid at an average interest rate of approximately 9.74 percent. Airtel had previously made full prepayments on liabilities with interest rates of 10 percent, 9.75 percent, and 9.3 percent.
Reduction in Cost of Debt and Lower Liabilities for Airtel
As a result of these prepayments, Airtel has reduced its cost of debt on spectrum liabilities to an average of approximately 7.22 percent. The residual Rs 52,000 crore of spectrum liabilities (excluding Adjusted Gross Revenue or AGR liabilities) are now subject to a much lower rate. These residual spectrum liabilities have long repayment profiles, with annual installments payable until FY 2042.
Further Reductions in Liabilities with Perpetual Notes Redemption
The prepayment effort also includes the redemption of $1 billion in USD Perpetual Notes, issued by Network i2i Ltd. in FY 2020. These Perpetual Notes had no fixed maturity and carried an interest rate of 5.65 percent.
With this redemption, Airtel now has approximately $479 million in perpetual notes outstanding, which were issued in FY 2021. These remaining notes have the option to be called in FY 2026.
