Bharti Airtel, a leading telecom major, is contemplating an offshore bond issue, aiming to raise up to $1 billion (according to sources familiar with the matter). The move is part of the company’s strategy to refinance high-cost debt, bolster its balance sheet, and address its capital expenditure requirements for 5G deployment.

Reports indicate that Bharti Airtel is currently in discussions with Barclays, Standard Chartered Bank, and Citi to explore the feasibility of floating US dollar bonds in overseas markets, potentially through multiple tranches within the current fiscal year.

Market analysts predict that Bharti Airtel, along with Jio, will capture approximately 81% of the adjusted revenue market share by FY25. This intensified competition places Vodafone Idea in a challenging position, underscoring the urgency for the third-largest carrier to launch 5G services promptly. Analysts at CLSA noted that Vodafone Idea’s delayed 5G rollout could potentially lead to further market consolidation, favouring RJio and Bharti Airtel, which are actively ramping up their 5G offerings. Currently, the top two operators command a combined 77% of sector revenue, projected to rise to 81% by FY25CL. Consequently, market sentiment remains positive towards RJio and Bharti Airtel.

In the previous fiscal year’s fourth quarter, Jio surpassed Airtel in revenue market share (RMS), as reported by the Telecom Regulatory Authority of India (TRAI). Jio Infocomm witnessed a 13 bps surge in gross revenue market share, reaching 41.7% during January-March 2023, while Airtel’s RMS stayed steady at 36.5%. Vodafone Idea experienced a decline in RMS, losing 42 bps to reach 16.6%, according to the data.

Overall, Bharti Airtel’s potential offshore bond issue highlights its proactive approach to optimize its financial standing and accelerate its 5G ambitions in a highly competitive telecom landscape.

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