Sunil Bharti Mittal-led Bharti Airtel is reportedly exploring a fundraise of around $1 billion (around Rs 8,330 crore) to prepay a bulk of its remaining dues relating to the spectrum bought in 2015. This fundraise could also include a potential bonds issue.

According to a report in The Economic Times, the telco giant is expected to engage with top global banks such as Barclays and Citi later this month to discuss the preferred mode of fundraising and pricing.

The company needs to clear Rs 12,000 crore of deferred liabilities pertaining to the spectrum purchase in 2015. According to senior bankers aware of the matter, the company has been inquiring about the most cost-effective way of raising funds and whether to go the bond route. The refinancing would help Bharti Airtel save on annual interest costs, fortify its balance sheet and boost cash flows as it continues to expand its 5G coverage, the report added.

Airtel might also consider the option to access a portion of its remaining rights issue proceeds to prepay some of the 2015 spectrum auction dues. The telco had raised Rs 5,247 crore in the first tranche of the Rs 21,000 crore rights issue two years ago.

The telecom giant had bought 111.6 MHz of spectrum for Rs 29,130.2 crore. Out of that Rs 7,832.6 crore was paid upfront and later paid two more tranches of Rs 8,815 crore in March 2022 and Rs 8,025 crore in July 2023.

Meanwhile, Bharti Airtel, in October, reported a 37 per cent decline in net profit (attributable to owners) at Rs 1,341 crore for the quarter ending September 30, 2023 due to a one-time charge of Rs 1,570 crore. It reported consolidated net profit of Rs 2,145 crore in the year-ago period.The firm's revenue rose 7% to Rs 37,044 crore in Q2FY24 as against Rs 34,527 crore in Q2FY23.