Bharti Airtel prepaids Rs 5,985 crore to DoT, reduces spectrum debt and interest costs

Post the redemption of $1 billion in perpetual notes, Airtel will have about $479 countless continuous notes superior, which were issued during FY21. These notes can be contacted FY26, the company said.

Airtel has currently prepaid Rs 25,981 crore of high-cost range obligations in FY25 and cumulatively pre-paid range liabilities of Rs 66,665 crore as on date. The ordinary rate of interest on the collective liabilities pre-payed was about 9.74%.

Bharti Airtel and its unit Bharti Hexacom have prepaid an extra Rs 5,985 crore to the Department of Telecommunications (DoT), completely getting rid of high-cost financial debt concerning the 2024 public auctions that carried a rate of interest of 8.65%.

“Highlighting its commitment to monetary prudence, functional performance and its strong funding setting, Airtel remains to pre-pay its high-cost spectrum obligations, decreasing its financial debt and price of debt,” the Sunil Mittal-led telco stated in a declaration Wednesday.

Consequent to these payments, Airtel has actually reduced its cost of financial debt on spectrum obligations to an average of about 7.22% on the recurring Rs 52,000 crore of spectrum liabilities (excluding AGR responsibilities). The residual range liabilities carry a lengthy settlement account, payable in yearly instalments until FY42.

These early repayments have actually been made concerning 7 years ahead of their typical residual maturities, the firm included. This has actually led to Airtel getting rid of Rs 116,405 crore of scheduled instalments that would certainly, otherwise, have been payable on their corresponding dates over the initial tenure of the responsibilities.

Airtel was the top buyer of airwaves in India’s 2nd 5G spectrum sale last year. It had actually gotten 97 MHz of 5G airwaves worth Rs 6,856.76 crore, adding around 60.5% to the main feline. The government had actually gathered a moderate Rs 11,340.78 crore from its second 5G airwaves sale last June.