Airtel’s global bond yields spike on concerns over telecom stress

Global investors appear to have turned apprehensive about Bharti Airtel’s ability to repay debt amid growing concern over stress in the local telecom sector.

The company’s offshore perpetual bond yields surged more than 200 basis points, pulling down prices from their October 7 launch levels as the debt papers changed hands in the secondary market.

The bonds were sold with a coupon of 5.65% and now yield 7.73%, dealers said. Asset managers, insurance companies, pension funds and banks across Europe, Asia and the US picked up the bonds. US Treasury benchmark yields, a key global gauge, rose 10 basis points in the past one month.