Daijiworld Media Network - New Delhi
New Delhi, Mar 26: Bharti Airtel announced on Wednesday that it has fully prepaid its high-cost spectrum liabilities related to the 2024 auctions, making an additional payment of ?5,985 crore to the Department of Telecom (DoT). This move, made in conjunction with its subsidiary Bharti Hexacom Ltd, effectively eliminates the burden of an 8.65% interest rate on these dues.
Additionally, Airtel’s subsidiary Network i2i Ltd. has voluntarily redeemed $1 billion in Perpetual Notes, further strengthening the company’s financial position.
With this latest payment, Airtel has now prepaid a total of Rs 25,981 crore of high-cost spectrum dues for FY 2025, bringing its cumulative prepayments to a staggering Rs 66,665 crore. The average interest rate on these prepaid liabilities stood at 9.74%, with Airtel having previously cleared dues carrying interest rates of 10%, 9.75%, and 9.3%.
According to the company, these prepayments were made seven years ahead of their scheduled maturities. As a result, Airtel has wiped out Rs 1,16,405 crore in future scheduled instalments that would have otherwise been payable over their original tenure.
Following this strategic debt reduction, Airtel has now lowered the average cost of debt on its remaining Rs 52,000 crore spectrum liabilities to approximately 7.22% (excluding Adjusted Gross Revenue or AGR dues). These liabilities are structured over a long-term repayment schedule, with instalments payable until FY 2042.
The company also highlighted that Network i2i Ltd. exercised a call option to redeem $1 billion in USD Perpetual Notes, initially issued in FY 2020 at an interest rate of 5.65%. These notes had no fixed maturity and could have remained indefinitely.
Following this redemption, Airtel now has approximately $479 million in outstanding perpetual notes, which were issued in FY 2021. The company confirmed that these remaining notes will be eligible for a call option in FY 2026.
With these proactive financial measures, Airtel continues to reinforce its balance sheet, lower borrowing costs, and enhance long-term financial stability.