Vodafone Idea Infra Unit Cuts Issue Size of Bonds: Report

Vodafone Idea Telecom Infrastructure, a wholly owned subsidiary of Vodafone Idea Limited (VIL), has now reduced the size of bonds for fundraising. The telco had initially announced that it is looking to raise around Rs 50 billion from the bonds. However, that has now been reduced to Rs 32 billion. This is likely for securing cheaper funding from lenders, said a report from Reuters.

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So this debt will be raised in multiple chunks. A chunk will come via two-year bonds at a yeild of around 12%. The remaining amount will come via a bond for 3 years and two months for a yield of around 14%. The bond raise should complete around December 2025. These bonds will be guaranteed by Vodafone Idea and will also come with a call option at the end of one year.

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The money raised via these bonds by Vodafone Idea will be used for expansion purposes. Note that this has been reported by Reuters, and hasn’t been confirmed by Vodafone Idea yet. The money will be tapped via private credit funds. If Vodafone Idea is able to raise money via these bonds till the end of December 2025, it will allow the telco to boost capex for expanding networks.

The telecom operator has been trying to raise funds for the last few years for scaling its capex. The company has already stepped up the capex, and has been lately finding it hard to keep up with it due to not being able to raise fresh funds. The telco had planned to raise about Rs 25,000 crore via debt to roll out 4G and 5G in new areas and also modernise the existing infrastructure.