Sources said Bharti Airtel is likely to meet global investors early next week for a benchmark bond sale that is expected to raise $1 billion. They said the company's plan to raise $1 billion was already shared by Bharti Enterprises Group chief financial officer Sarvjit Dhillon on February 1.
"The final rating of the proposed notes is contingent upon the receipt of documents conforming to information already received. Bharti will use the proceeds from the proposed notes to refinance part of its existing debt and for general corporate purposes," Fitch said.
It added the negative outlook continues to reflect ongoing regulatory uncertainty in its Indian operations relating to a one-time charge for excess spectrum (over 6.2 MHz) and spectrum refarming.
"However, the charges are now likely to be phased over the life of the licence, rather than paid up-front, which will aid Bharti's deleveraging efforts," it said. Fitch said at end-December 2012, Bharti had total debt of $13.6 billion and cash and equivalents of $1.9 billion.