Airtel pre-pays Rs 15,519 cr to clear deferred spectrum liabilities
New Delhi (India), December 17 (ANI): Bharti Airtel said on Friday it has pre-paid Rs.15,519 crore to the Department of Telecom (Government of India) towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in the 2014 auction.
ANI
Dec 17, 2021 14:39 IST
New Delhi (India), December 17 (ANI): Bharti Airtel said on Friday it has pre-paid Rs.15,519 crore to the Department of Telecom (Government of India) towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in the 2014 auction.
The company had acquired 128.4 MHz spectrum (including Telenor spectrum) for a consideration of Rs.19,051 crore in the 2014 auction.
These liabilities were due in annual installments from FY 2026-2027 to 2031-2032 and carried an interest rate of 10 per cent (the highest rate amongst the deferred liabilities and borrowings) and an average residual life of 7+ years.
The company estimates that the prepayment will likely result in interest cost savings of at least Rs.3,400 crore over the residual life for fully substituted capital.
"Airtel continues to exercise flexibilities towards a stronger and efficient capital structure. The company welcomes the Department of Telecom's decision giving the industry the flexibility to prepay their deferred liabilities anytime at their NPV basis the interest rates specified for the respective auction. This allows the licensees to efficiently plan and use their cash flows," Bharti Airtel said in a statement. (ANI)
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