Bharti Airtel and its subsidiary Bharti Hexacom have once again shown how financial discipline and strategic thinking can lead a company forward. By paying an advance payment of Rs 5,985 crore to the Department of Telecommunications, Airtel has settled the liability of 8.65% interest rates related to the 2024 spectrum auction.
The company has given this information to the stock markets itself and this step is not only a financial payment but part of the company’s long -term strategy.
Airtel’s strategy to repay spectrum debt
Airtel has been engaged in reducing its expensive debt above for a long time. This latest payment is the expansion of this strategy. According to the company, this step not only reduced the cost of interest, but also strengthened their balance sheet. This shows that the company is leading not only in the telecom sector, but also in financial understanding.
With the advance payment of spectrum payments, the company has also improved the operational efficiency and assured its investors that they are investing in a stable and vision company.
Total payment has been paid for Rs 66,665 crore so far
Airtel has informed that it has made advance payment of high-cost spectrum liabilities worth Rs 25,981 crore in the current financial year 2024-25. The company has so far paid 66,665 crore rupees in this item, including the payment made earlier.
This figure is not just a number, it is the story of Airtel’s growth and financial strength. According to the company, this strategy has now reduced its interest rate on spectrum loans to 7.22%, which is much lower than before.
Network i2i Limited also paid perpetual notes
Airtel’s global subsidiary Network i2i Limited Has also raised an important financial step. It has voluntarily redeemed perpetual date securities worth $ 1 billion. These notes were issued in FY 2019-20 and now the company has drew them ahead of time using the call option.
Permanent securities are financial instruments that have no fixed maturity date. But under the call option, the company has the facility that it can redeem them on fixed time or conditions – and Airtel took advantage of it.
What does this financial discipline of Airtel mean?
- This shows that the company is not only paying attention to customer base or network expansion, but is also giving equal priority to financial health.
- The company is getting relief from future interest burden by finishing high-cost date ahead of time.
- This will further strengthen the trust of the investors, which will also improve the company’s market value and credit profiles.
