Bharti to Shortlist 6 Banks to Lead Merger Loan

by CXOtoday Staff    Aug 19, 2009

More than ten banks are understood to have submitted revised bids for Bharti Airtel’s acquisition of MTN Group of South Africa. The offshore loan is reportedly in the range of from $3 billion to $4 billion.

Bharti’s financing package also includes a local rupee-denominated loan of $1-2 billion equivalent.

The banks that have submitted revised bids include ANZ, Bank of Tokyo-Mitsubishi UFJ, Barclays Capital, Calyon, DBS Bank, HSBC, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

The leading mobile operator is expected to shortlist about six banks in the next few days to lead its loan. However, the deal structure and its terms are yet to be finalised, sources said.

The State Bank of India, along with other local banks, is likely to finance the local $1-2 billion rupee-denominated loan.

Standard Chartered Bank is advising Bharti on the proposed acquisition, while Bank of America, Merrill Lynch and Deutsche Bank are advising MTN.