Bharti signs for over US$2bil loan amid threat of ratings cut

On hold: A man stands next to the wall of a grocery shop painted with an advertisement for Bharti Airtel in the southern Indian city of Kochi. Bharti delayed plans for an initial public offering of its Africa unit due to the turmoil in emerging markets. — Reuters

MUMBAI: Bharti Airtel Ltd is raising more than US$2bil in loans from banks, as India’s second-biggest wireless carrier faces increased competition at home and the threat of a ratings downgrade to junk.

The company, controlled by billionaire Sunil Bharti Mittal, has agreed to two- and three-year bilateral loans with 10 to 12 lenders, according to people with knowledge of the matter, who are not authorised to speak publicly and asked not to be identified.