Summary of Proposed Investment
Project Number
10379
Company Name
BHARTI AIRTEL LIMITED
Date SPI Disclosed
Oct 12, 2000
Country
India
Industry
Telecommunications and Technology
Projected Board Date
Nov 15, 2000
Status
Completed
Sector
Mobile Telephony
Department
WBG Digital and AI
Environmental Category
B - Limited
Previous Events
Approved : Jan 18, 2001
Signed : May 30, 2001
Invested : Aug 6, 2001
Project Description
BML: BML, formerly JT Mobile, has the cellular licenses for Karnataka and Andhra Pradesh and commenced operations in 1997, and has grown to a total subscriber base of about 100,000. The Bharti Group acquired a stake in BML in December 1999.
IFC''s partial guarantee on local bond financing will enable the mobilization of a significant amount of funds, encourage investments from non-banking institutional investors who would be unlikely to lend to an infrastructure development project without IFC''s guarantee, and increase the breadth of the securities market in India. IFC''s involvement will signal to the market that the ongoing telecommunications reforms initiated by the government are beneficial to the country, and should be continued. IFC''s involvement will help fulfill the Company''s desire for local currency funds, minimizing foreign exchange risk. The project supports the liberalization and development of a competitive telecommunications sector, which aims at providing low cost access to basic as well as value added telecommunication services with a customer focus.
IFC''s partial guarantee on local bond financing will enable the mobilization of a significant amount of funds, encourage investments from non-banking institutional investors who would be unlikely to lend to an infrastructure development project without IFC''s guarantee, and increase the breadth of the securities market in India. IFC''s involvement will signal to the market that the ongoing telecommunications reforms initiated by the government are beneficial to the country, and should be continued. IFC''s involvement will help fulfill the Company''s desire for local currency funds, minimizing foreign exchange risk. The project supports the liberalization and development of a competitive telecommunications sector, which aims at providing low cost access to basic as well as value added telecommunication services with a customer focus.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
spuri@ifc.org