The prepayment is for instalments due in FY2027 and FY2028, the Sunil Mittal-led telco said in a statement.
“Airtel prepays Rs 8,815 crore to clear deferred liabilities for spectrum acquired in 2015,” the company said.
Over the last four months, Airtel has cleared Rs 24,334 crore of its deferred spectrum liabilities ahead of schedule.
These liabilities carried an interest rate of 10 per cent and have been paid off through a combination of free cash generated by the business, equity proceeds, and significantly lower cost debt of a similar tenor.
Airtel said it continues to focus on financial flexibility via its capital structure, including optimising the cost of financing and capitalising on all opportunities of significant interest saves, like the latest prepayment.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.