Vodafone To Raise ₹5,000 Crore

Vodafone Idea's subsidiary will raise ₹5,000 crore by issuing short-term bonds. The company is expected to leverage private credit funds for this bond issue and offer coupons of approximately 12% and 14% on two-year and three-year bonds, respectively. Vodafone Idea Telecom Infrastructure, a subsidiary of telecom company Vodafone Idea, plans to raise ₹5,000 crore through short-term bonds in September, news agency Reuters reported on Tuesday, citing sources.

According to the report, this unit of India's third-largest wireless carrier is planning to issue bonds with two- and three-year maturity periods, raising ₹3,000 crore and ₹2,000 crore, respectively. The company will use private credit funds.Sources said the company is expected to use private credit funds for this bond issue, offering coupons of approximately 12% and 14% on two-year and three-year bonds, respectively. A source said, "These funds will be used for new capex as the company seeks to expand."
Vodafone Idea declined to comment on the matter.

Focus on expanding 5G servicesIn May, billionaire Kumar Mangalam Birla-led Vodafone Idea received board approval to raise ₹20,000 crore through shares or debt. The company said in an earnings call earlier this month that it aims to expand its 5G services to more major cities in 17 key circles by September 2025. Vodafone Idea has faced difficulties in paying its spectrum and revenue-sharing dues. This is due to a 2019 Supreme Court ruling that broadened the definition of rvenue for payment. To support the company in its precarious situation, the government converted a portion of its spectrum dues into equity in April, increasing its stake in the company to 48.99 percent.