Airtel Optimizes Financial Position with Prepayment Strategy

Bharti Airtel Ltd., along with its subsidiary Bharti Hexacom Ltd, has prepaid Rs 5,985 crore, clearing high-interest spectrum liabilities. This proactive move reduces debt and interest costs. Cumulatively, Airtel has prepaid Rs 66,665 crore of its liabilities. Additionally, its subsidiary Network i2i Ltd. redeemed USD 1 billion in Perpetual Notes.

Bharti Airtel Ltd. and its subsidiary Bharti Hexacom Ltd. have proactively prepaid an additional Rs 5,985 crore to the Department of Telecom, effectively clearing their high-interest liabilities incurred from the 2024 auctions, as announced in a press release on Wednesday. The company detailed this financial maneuver as part of its broader strategy to lower debts and streamline costs.

Airtel's actions exemplify its commitment to financial prudence and operational efficiency, as reflected in its massive prepayment of Rs. 25,981 crore in high-cost spectrum liabilities for the 2025 fiscal year, with a total of Rs 66,665 crore being prepaid to date at an average interest rate of 9.74%. This strategy underscores a robust capital position.

Previously, Airtel had prepaid higher-interest liabilities, achieving significant savings by accelerating the payoff timeline by nearly seven years. The company's efforts have resulted in the elimination of Rs 116,405 crore in scheduled instalments. Post these payments, the residual debt now carries a reduced average interest rate of 7.22% with repayment extending until FY 2042.

Additionally, Network i2i Ltd., a subsidiary of Airtel, redeemed USD 1 billion in Perpetual Notes, originally set at an interest rate of 5.65%, indicating strong fiscal management. This leaves about USD 479 million in outstanding notes, which are callable from FY 2026 onwards, highlighting Airtel's strategic financial orchestration.

(With inputs from agencies.)