Bharti Airtel, alongside its subsidiary Bharti Hexacom, has prepaid an additional Rs 5,985 crore of high-cost spectrum liabilities to the Department of Telecom (DoT), further reducing its debt burden, the telecom giant announced on Wednesday.
Airtel stated that the prepayment of these liabilities, related to the 2024 auctions, has fully settled the high-interest debt of 8.65%. As part of its broader financial strategy, Airtel’s subsidiary, Network i2i Ltd, has also voluntarily redeemed $1 billion worth of perpetual debt securities.
Airtel emphasized its commitment to financial prudence and operational efficiency, noting that these prepayments contribute to a reduction in both its debt and the cost of debt. So far, Airtel has prepaid Rs 25,981 crore of spectrum liabilities for the fiscal year 2025, bringing the total amount prepaid to Rs 66,665 crore. This is part of Airtel's ongoing effort to lower its debt load, with the prepayments made roughly seven years ahead of their original maturities.
The company pointed out that the interest rates on the prepaid spectrum liabilities averaged 9.74%, with previous prepayments clearing debts carrying interest rates of up to 10%. These proactive prepayments have eliminated Rs 1,16,405 crore in scheduled instalments that would otherwise have been payable over the remaining tenure of the liabilities.
As a result of these actions, Airtel has reduced its cost of debt on the residual spectrum liabilities to approximately 7.22%, based on the remaining Rs 52,000 crore in spectrum dues. These liabilities are set to be paid off in annual instalments until FY 2042.
Additionally, Airtel’s subsidiary, Network i2i, has exercised its call option to redeem $1 billion in perpetual notes, which had an interest rate of 5.65%. After this redemption, Airtel will have approximately $479 million in outstanding perpetual notes, which are callable in FY 2026.
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