Financing for the Bharti-MTN deal is progressing well

Leading Indian telecommunications services provider Bharti Airtel will raise around $5 billion of financing for its deal with MTN, according to sources close to the situation. Informal commitments for the loans required are already in place and a number of banks have expressed interest in participating in both the dollar- and rupee-denominated facilities.

The deal between Bharti and Johannesburg-based cellular network operator MTN envisages the South African firm and its shareholders taking a 36% stake in Bharti, while the Indian company will acquire a 49% stake in MTN. The $5 billion is intended to be split into two tranches -- a $3 billion to $3.5 billion five-year dollar financing and a $1.5 billion...