Airtel prepays Rs 8,815 cr to clear deferred liabilities for spectrum
Digital communications solutions provider Bharti Airtel on Friday said it has paid Rs 8,815 crore towards part prepayment of deferred liabilities pertaining to spectrum acquired in auction of year 2015.
image for illustrative purpose
New Delhi, March 25 Digital communications solutions provider Bharti Airtel on Friday said it has paid Rs 8,815 crore towards part prepayment of deferred liabilities pertaining to spectrum acquired in auction of year 2015.
Accordingly, the payment was made to the Department of Telecom, Government of India.
"The prepayment is for installments due in FY 2027 and FY 2028," the company said in a statement.
"Over the last four months, Airtel has cleared INR 24,334 crores of its deferred spectrum liabilities much ahead of scheduled maturities."
As per the statement, these liabilities carried an interest rate of 10 per cent and have been paid off through a combination of strong free cash generated by business, equity proceeds and significantly lower cost debt of similar tenor.
"Airtel continues to focus on financial flexibility via its capital structure, including optimising cost of financing and capitalising on all opportunities of significant interest saves like this prepayment."
