India’s top mobile carrier Bharti Airtel has received financing commitments of up to $2.5 billion from top Chinese banks as it tries to invest in the growth of data networks across its global operations.
- Bharti Airtel Ltd has received financing commitments from China Development Bank and Industrial and Commercial Bank of China.
- Financial commitments of about $2.5 billion.
- Industrial and Commercial Bank of China has committed $500 million.
- China Development Bank has committed financing of up to $2 billion.
- This is the single largest bilateral commitment by China Development Bank to any telecom operator globally.
- Also the largest bilateral commitment to a private Indian company.
- Agreement is signed for an average maturity of about nine years.
- The transaction needs approvals, including from India’s central bank, the Reserve Bank of India.
The company signed the term sheets for the financing options with the Chinese banks in the presence of Prime Minister Narendra Modi, who is currently on an official visit to China.
How these fundings would help Airtel ?
- The financing will help the telecom company with its aggressive plans to roll out the 4G network across the country ahead of the launch byReliance Jio.
- Airtel also faces a large pay-out for spectrum allocation.
- Bharti Airtel can draw these funds over a long availability period, depending on its financing requirements.
- These shall further extend tenors, enabling investments for furtherance of the Digital India initiative.
Bharati Airtel Engagements in China :
- In March 2015, Bharti Airtel had announced a strategic collaboration with China Mobile.
- Bharti Airtel also has network equipment sourcing agreements with ZTE and Huawei.
Bharati Airtel :
- Founder – Sunil Bharti Mittal
- Headquarters – New Delhi
- Operates in 20 countries across Asia, Africa and channel islands.
- Airtel is the largest mobile operator in South Asia.
- It is the fourth largest in the world by subscriber base.
- It is the largest cellular service provider in India, with 192.22 million subscribers.