Brookfield Asset Management (NYSE: BAM) is planning to raise about $1.2 billion of debt to fund the acquisition of American Tower’s (NYSE: AMT) towers in India, according to Bloomberg. The deal involves Brookfield buying 100 percent of American Tower’s assets of over 77,000 towers in India for $2.5 billion, Inside Towers reported.
Though Brookfield has not commented, it is believed to be evaluating various types of fundraising with a group of global lenders in India. Options being discussed include an offshore loan and the sale of non-convertible debentures with investment commitment from overseas investors, Bloomberg reported. Any deal will likely close later in the year, according to people familiar with the situation.
American Tower’s biggest mobile network operator tenant, Vodafone Idea, faltered financially and failed to maintain payments under their site leasing agreement. This action prompted American Tower to evaluate its business in the country and ultimately decided to exit India.
Brookfield, on the other hand, is betting on growth in India whose economy is outpacing that of other large countries and where smartphone usage is increasing rapidly, according to Inside Towers Intelligence. Brookfield already owns Summit DigiTel, the biggest tower company in India, and has the leading MNOs, Reliance Jio and Bharti Airtel, as its prime tenants.
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