Vodafone Idea Infra plans ₹50 bn debt sale in September to fund expansion
Mumbai: Vodafone Idea Telecom Infrastructure, a wholly owned subsidiary of Vodafone Idea, is preparing to raise up to ₹50 billion ($569.5 million) through a debt sale in September, Reuters reported, citing three people with knowledge of the matter said on Tuesday.
The unit of India’s third-largest mobile carrier intends to issue bonds with maturities of two and three years, targeting ₹30 billion and ₹20 billion, respectively, the sources told Reuters.
According to two of them, the company is expected to turn to private credit funds for the issuance and may offer coupon rates of about 12 percent on the two-year bonds and 14 percent on the three-year bonds.
“The funds would be used for fresh capex as the company wants to expand,” one of the sources told Reuters.
All the sources sought anonymity as they were not authorised to speak publicly. Vodafone Idea declined to comment.
In May, the company, helmed by billionaire Kumar Mangalam Birla, received board approval to raise ₹200 billion via equity or loans.
Earlier this month, it also told investors during an earnings call that it aims to roll out 5G services across more key cities in 17 priority circles by September 2025.
Vodafone Idea continues to grapple with hefty spectrum and revenue-sharing arrears following a 2019 Supreme Court verdict that expanded the definition of adjusted gross revenue.
In April, the government converted a portion of the company’s spectrum dues into equity, raising its shareholding in the telco to 48.99 percent.
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