BHARTI Airtel Limited, Indias top mobile carrier, has mandated no fewer than five banks to raise up to $1 billion via a dollar bond issue to retire its African debt, two sources privy to the deal told Reuters on Monday.The investor meeting for the issue will start next week, they said, adding the joint book runners include Barclays Capital, Deutsche Bank, HSBC, Standard Chartered and UBS.The proceeds of the issue will go towards refinancing part of the debt raised by Bharti to acquire Kuwaiti Zains operations in 15 African countries.Bharti, which had completed the $9 billion acquisition last June to become the worlds fifth-biggest wireless operator, had raised $7.5 billion multi-tranche loan late last year.Bharti Airtel, Indias top mobile phone carrier, plans to raise $750 million to $1 billion through a global bond issue to retire its costly Africa debt and fund expansion there, an official told ET.At 10:00 am on Monday, shares of Bharti Airtel were trading 1.29 per cent up at Rs 383.70 on the Bombay Stock Exchange.The issue will be in the form of debentures and will have a tenure of 10 years, the official, who has direct knowledge of the development, said on condition of anonymity.The investor meeting for the issue will start next week, the sources said, adding the joint book runners include Barclays Capital, Deutsche Bank, HSBC, Standard Chartered, UBS, BNP Paribas and Credit Agricole.Bharti declined to comment on the offering. Loss related to Bhartis Africa business was 5.25 billion rupees ($118.6 million) in the quarter ended on December 31.The sale will be the first senior bond from an Indian corporate since energy major Reliance Industries raised $1.5 billion through global bonds.Last week, credit ratings agency Fitch had reduced Bharti Airtels outlook to negative from stable, citing risks involved in its African operations.The proposal will be put up before the companys board today, when it meets to discuss results for the financial year-ended March 11. The proposal is expected to be cleared during the meeting, the official said.Banks and individuals in the global market will subscribe the debentures. The final amount to be raised will depend on the interest rate the company gets and the response from promotional roadshows, the official added.Bharti Airtel was to pay about $900 million of the $7.5 billion loan it took from banks to fund its acquisition of the African assets of Kuwait-based Zain Telecom. The buy expanded Bharti Airtels operations in 19 countries stretching across South Asia.Bharti Airtels spokesperson declined to comment on the companys plans to sell its first overseas bond.On the telcos outlook, the ratings agency had said, Fitch is concerned that ongoing execution risk attached to Bhartis African operations could potentially lead to lower-than-expected performance.Specific concerns include rising competitive intensity (in certain African markets), operational challenges, higher network operating costs and comparatively low network coverage, which may result in higher-than-expected capex ($800 million) in FY12, the agency added.The rating agency feels Bharti will find it difficult to bring its Africa EBITDA margin level to 40 per cent from the current 25 per cent (normalised margins) due to a factors such as lower termination rates, cost efficiencies on selling, general and administration expenses.It also said the telco would find it tough to cut net debt, despite having stronger cash flows because of the regulatory uncertainty and changes in the sector in its home market.
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