Allen & Overy advised Bharti Airtel on US law when it recently raised US$1 billion through a 10-year bond issue to international investors under Rule 144A. The lead managers were advised by Skadden Arps Slate Meagher & Flom on US law and Axon Partners on Indian law.
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Hong Kong-based partner Amit Singh, who led Allen & Overy’s team, told India Business Law Journal that this was another highly accelerated bond transaction by Bharti, “concluded in a week’s time”. Singh added that the structure had changed from issuing through a Dutch subsidiary with a parent guarantee to an issue directly by the parent, which necessitated several changes in the disclosure and contract documentation. “The decision to change the structure was taken at the very last minute before pricing.”
Singh – who was supported on this transaction by Garrick Merlo, Julie Song and Katie Hickmet – also advised Bharti Airtel on the earlier transactions: an inaugural Rule 144A US$1 billion bond offering in 2013 and simultaneous notes offerings of US$1billion and €750 million under Rule 144/Regulation S in 2014, where the firm advised the issuer, Bharti Airtel International (Netherlands), and Bharti Airtel as the guarantor.
Skadden’s team included partners Rajeev Duggal and Jonathan Stone and Axon Partners team was led by co-founding partner Abhimanyu Bhandari. “Bharti Airtel’s bond offering was a complex transaction executed in an accelerated time frame and paves the way for increased activity by Indian issuers,” Duggal told India Business Law Journal.
Bharti Airtel will use the proceeds of the latest issue for capital expenditure. It recently received bilateral financing commitments of up to US$2.5 billion from China Development Bank and Industrial and Commercial Bank of China. China Development Bank’s commitment is its single largest bilateral commitment to an Indian company and the largest to any telecom operator globally.
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