BHARTI Airtel looks set to land its $9-billion purchase of Zain's African assets, overcoming

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a stumbling block posed by an ownership spat over Zain's Nigerian units.

A dispute between Zain Nigeria and South Africabased Econet Wireless Holdings -a minority shareholder -had been a complication in Bharti's third effort to get its hands on the business in Africa.

But a team of bankers from UBS advising Zain, who visited Nigeria with Bharti chairman Sunil Mittal last week, indicated the two parties had worked their way around the problem, though they did not say how.

"The Nigeria situation didn't come as a surprise to anyone and won't derail the deal. We are hopeful that an agreement can be reached by March 25," a person familiar with the deal said, referring to the date on which exclusivity expires.

Bharti also came closer to lining up financing this week, sending a term sheet to a shortlist of banks to raise $8.5 billion in offshore loans, sources said.

The six-year offshore facility has four tranches and carries a blended average life of 4.75 years, with a margin ranging from 176 basis points to 179 bps over Libor, the sources said.

Previously, Bharti was said to be looking for a $9 billion facility, which also included an onshore rupee tranche. Bankers familiar with the deal said the all-in pricing is below all expectations, which ranged from 200 bps to 250 bps above Libor. Exclusive negotiations are scheduled to lapse on March 25. A source said Bharti dropped the onshore tranche of its loan due to the strong response from offshore lenders.

Barclays Capital, Citigroup, Standard Chartered Bank and State Bank of India are expected to underwrite larger amounts than other banks. Banks have until Wednesday to respond.