Bharti Airtel Presentation: Fixed Income & Derivatives
At the end of the MAGIC session you will be required, together with your group, to give a
presentation to the Board of Bharti Airtel (“BAT”) on opportunities in the debt capital markets and derivatives for the company.
Situation: ; It is November 2010, and you believe BAT may have an interest in tapping the debt
capital markets, either now or in the future.
; You may make assumptions about BAT’s expansion plans locally or internationally
which may require it to increase its borrowings, and/or replace maturing debt. The
company needs to select the maturity, currency and type of bond issue, and should
decide, if the debt is issued in another currency, whether to hedge its exposure or not.
; Please treat all the background information you have gathered from previous
presentations as being potentially relevant for this role play.
; You will be making your pitch to senior members of the BAT board who have already
indicated their interest in hearing what you have to say.
Strategy: ; The presentation should ideally be between 10 – 20 slides and cover, in no particular
order, the following agenda items at the very least:
1. Bharti Airtel’s objectives
2. (a) DCM alternatives
(b) Recommendation and rational.
3. (a) Exposure identification and quantification
(b) Derivative opportunities
; Feel free to use the all the information you do have at your disposal, and you have
permission to cut-and-paste any data you deem relevant including Bloomberg
information and PowerPoint presentation material from the week’s session.
; Key current market data is supplied in the form of Bloomberg screens that have been
saved in the desk-top folder Capital Markets/ Bloomberg. The instructor will assist you
with any supplemental market information you require.
; Although the client is not likely to be interested in the minute details of any spreadsheet
calculations or information on the derivative hedges, you may wish to include some
information in an appendix just in case you are asked.
; You may feel you do not have all the information you require, in which case don’t be
afraid to make assumptions …. and test the client reaction. It is often the best way to
glean information from your client!
Good luck in your preparations!