Banks Arranging Up to $10 Billion Loan for Bharti

from:dowjones

HONG KONG -- A syndicate of up to nine banks are arranging
a medium-term loan worth $9 billion to $10 billion to help
Bharti Airtel Ltd. finance its purchase of the African assets
of Kuwait's Mobile Telecommunications Co., a person familiar with the situation said.

If the medium-term loan doesn't materialize, Bharti's deal advisers,
Barclays Capital and Standard Chartered PLC,
have issued a letter of commitment to contribute about
$5 billion each in financing, the person, who declined to be named, said late Tuesday.
 
The banks involved in the medium-term loan are
Standard Chartered, Barclays, as well as most of the
other banks that were involved in the financing of Bharti's
failed merger with South Africa's MTN Group last year, said the person.

Banks involved in the MTN deal included Australia and
New Zealand Banking Group Ltd., Bank of Tokyo-Mitsubishi UFJ,
Citigroup Inc., DBS Bank, BNP Paribas S.A. and
State Bank of India, said the person.

Indian lender State Bank of India is in talks to
be a part of the consortium, another person familiar
with the matter said Wednesday. DBS declined to
comment, while officials at the other banks weren't
immediately reachable.

Other foreign banks are eager to be part of the offshore
financing loan, "because Bharti's acquisition of Zain
doesn't involve an equity swap like the MTN one
did and is a straight buy, and there is a logic in Bharti
buying an African asset and exporting its very portable
model of low-cost cellular services for the
low-income clients," another person said.

Bharti Airtel officials declined to comment Wednesday.

Earlier this month, Bharti Airtel said it was in exclusive
talks until March 25 to buy the African assets of Zain,
except for its operations in Morocco and Sudan,
in its latest bid to enter a fast-growing market overseas
as intense competition and price wars hurt its growth at home.

Bharti's offer to Zain comes after its two failed attempts
at a merger with MTN over the past couple of years,
the latest one falling through over regulatory issues.