Brookfield Asset Management is planning to raise close to $1.2 billion of debt to fund the acquisition of American Tower Corporation's (ATC) assets in India, according to reports by Bloomberg.

ATC confirmed earlier this month that it had agreed to sell its operations in India for INR 210 billion ($2.5bn) to Brookfield.

India towers
– Getty Images

Data Infrastructure Trust (DIT), an infrastructure investment trust sponsored by an affiliate of Canada’s Brookfield Asset Management, signed a definitive agreement with ATC to acquire 100 percent of the equity interests in American Tower’s operations in India (ATC India).

Bloomberg cites sources familiar with the matter, noting that a potential offshore loan and the sale of non-convertible debentures with investment commitment from overseas investors are being considered.

The deal is expected to close in the second half of 2024, but is subject to customary closing conditions, including government and regulatory approvals.

With more than 226,000 sites worldwide, ATC first entered the Indian market 17 years ago.

The company had more than 77,000 towers in the country as of the end of 2022, although its biggest customer in the country is debt-stricken Vodafone Idea (Vi).

It's the third biggest tower infrastructure services provider in the country, behind Indus Towers and Brookfield-owned Summit Digitel which acquired Reliance Jio's telecom towers.

Brookfield has around 157,000 towers across India and counts Reliance Jio as its anchor tenant.