Proposed Rights Issue Is Credit Positive For Bharti Airtel Moody S
Airtel’s fund-raising plans entail rights issuance of up to Rs 25,000 crore and Perpetual Bond with equity credit of up to Rs 7,000 crore. Assuming the Rs 25,000 crore rights issue is concluded and all proceeds are used to pay down bank debt at the Indian operations immediately, the consolidated adjusted debt/EBITDA (Earnings before interest, tax, depreciation and amortisation) would fall, Moody’s said. “That said, we believe there are likely timing differences with respect to actual debt reduction particularly considering our expectations for capex and profitability of the Indian operations....