Bharti Airtel International B.V., doing business in Africa as Airtel Africa has raised $1.25 billion (over Rs 9,200 crore) by issuing fresh shares to six global investors including Warburg Pincus, Temasek, Singtel, and SoftBank Group International.
The company organized a two-stage fundraise to manage its debts.
The transaction will not be involving any sale of shares by existing shareholders.
The investment will be used to reduce Airtel Africa’s existing debt of approximately $5 billion and for the growth of its African operations, the Bharti Airtel unit listed in the UK said.
After the pre-IPO primary share issue, Bharti Airtel’s stake in its Africa unit will stand at around 65%, a dilution of over 28%. Sing-Tel, which owns 39.5% in Bharti Airtel, will invest $250 million for a 5.7% direct stake in Airtel Africa.
“Our investment into Airtel Africa reflects our confidence in the long-term growth potential of Africa with its young and growing population,” Arthur Lang, CEO of Singtel’s International Group, said in a statement.
Bharti Airtel is a global telecommunications company with operations in 17 countries across Asia and Africa.
“This primary equity issuance clearly underlines the confidence of leading global investors in Airtel Africa’s successful business strategy and its potential to sustain growth and profitability,” Raghunath Mandava, MD and CEO, Africa, Bharti Airtel, said.
Airtel Africa subsequently intends an initial public offering and use the proceeds primarily for further reduction of debt, a statement said.
“The transaction will help us further deleverage our balance sheet and boost our capacity to upgrade networks, expand coverage in different markets and achieve rapid growth of Airtel Money across our operations,” Mandava said.
Airtel Africa provides telecommunication services in 15 African countries.
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