Vodafone Idea Unit Eyes ₹5,000 Crore Short-Term Debt
Vodafone Idea Telecom Infrastructure Ltd, a subsidiary of Vodafone Idea, is preparing to raise up to ₹5,000 crore in short-term debt through bonds in September. The company plans to issue ₹3,000 crore in two-year bonds and ₹2,000 crore in three-year bonds.
Coupon Rates and Investor Base
The two-year bonds are expected to carry a coupon rate of around 12%, while the three-year bonds may offer about 14%. Vodafone Idea is targeting private credit funds to participate in the fundraising, which will help meet fresh capital expenditure requirements.
Funding Strategy and Capital Requirements
This move is part of the company’s broader plan approved in May to raise up to ₹20,000 crore via a mix of debt and equity. The funding is aimed at supporting Vodafone Idea’s rollout of 5G services across 17 key circles by September 2025.
Financial Pressures and Support Measures
Vodafone Idea remains under financial stress from spectrum and AGR liabilities. Earlier this year, the government converted over ₹50,000 crore of dues into equity, taking a 48.99% stake in the company. The new bond issuance and equity inflows are seen as critical for ensuring network expansion and stabilizing operations amid tight liquidity.
