Key Takeaways
- Airtel prepaid Rs. 8,024 crores to the Department of Telecom, reducing deferred liabilities.
- The prepayment leverages lower‑cost financing, saving on the 10% interest rate.
- This move enhances Airtel’s financial flexibility and strengthens its capital structure.
New Delhi: Bharti Airtel (“Airtel”), one of India’s leading telecommunications service providers, on Monday announced a prepayment of Rs. 8,024 crores to the Department of Telecom. The payment addresses part of the deferred liabilities for spectrum acquired in the 2015 auction.
The said instalments had an interest rate of 10% and have been prepaid by Airtel, leveraging much lower cost financing available to it, according to a media statement.
Airtel continues to enjoy access to a well-diversified sources of capital / financing, allowing it to have enhanced financial flexibility in its capital structure including optimised cost of financing using all opportunities for significant interest savings, like this prepayment.
