Airtel, on Friday, said that it has paid INR 8,815 crores to the Department of Telecom of the Government of India towards part prepayment of deferred liabilities pertaining to spectrum acquired in auction of year 2015. The company stated, ‘The prepayment is for installments due in FY 2027 and FY 2028.’
Over the previous four months, the digital communications solutions provider has cleared INR 24,334 crores of deferred spectrum liabilities well ahead of schedule. These liabilities had a 10- percent interest rate and were paid off using a combination of strong free cash flow generated by the business, equity proceeds, and significantly lower cost debt with a similar tenor.
Airtel added, ‘Airtel continues to focus on financial flexibility via its capital structure including optimising cost of financing and capitalising on all opportunities of significant interest saves like this prepayment.’
Airtel paid a prepayment of Rs 15,519 crore in December to settle its total deferred liability for spectrum acquired in the 2014 auctions. Its overall deferred spectrum debt post payments now stands at roughly 67,000 crore.