Bharti Airtel has tied up $8.5 billion (approx Rs 38,250 crore) to acquire Zain's Africa based unit, Zain Africa BV. On 20 March 2010, the Bharti Airtel board approved the company's financing plans. Now, the company is expected to make a final offer to Zain shortly.

A consortium of banks led by Standard Chartered and Barclays is likely to lend $7.5 billion (approx Rs 33,750 crore) and the State Bank of India (SBI) another $1 billion (approx Rs 4,500 crore), a rupee loan. The rupee loan is likely to be used to cover associated transaction costs.

Bharti is likely to sign the loan agreement with the banks soon. The other banks in the consortium include the Australia & New Zealand Banking Group, Bank of America-Merrill Lynch, BNP Paribas, Credit Agricole CIB, DBS Group Holdings, HSBC Holdings, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation. Global Investment House KSCC is the regional financial advisor for the transaction.

Addendum:

Bharti Airtel on 30 March 2010 signed a deal with Kuwait based Zain Telecom to buy its African business for $10.7 billion (approx Rs 48,000 crore).