Vodafone Idea (Vi) has raised Rs 3,300 crore through a privately placed bond issue, drawing strong participation from non-banking financial companies (NBFCs), mutual funds and foreign investors, underscoring growing non-bank appetite for higher-yield debt as banks remain cautious on exposure to stressed borrowers.
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NBFCs and Funds Lead the Bond Subscription
Tata Capital invested about Rs 500 crore in the issue, while JM Financial Credit Solutions, Aditya Birla Capital and Hero Fincorp committed roughly Rs 400 crore each. Nomura Capital participated across both tranches through its NBFC arm as well as via the foreign investor route, according to an Economic Times report by Shilpy Sinha dated December 22, 2025, citing people familiar with the transaction.
The bonds were issued through Vodafone Idea Telecom Infrastructure, a wholly owned subsidiary, and structured in two secured tranches. Series A comprised Rs 3,000 crore of notes carrying a 12 percent coupon, while Series B included Rs 300 crore with a 7 percent coupon. The securities have a tenor of about 21 months and include a call option exercisable after one year. The transaction was arranged by JM Financial Products.
Proceeds from the bond sale will be used to repay business consideration to Vodafone Idea following the transfer of fibre assets to the infrastructure arm and to support the telecom operator’s capital expenditure plans and business growth.
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Banks Remain Cautious Amid Asset-Quality Concerns
According to the report, the deal highlights increasing risk appetite among NBFCs and mutual funds in the search for higher yields, even as mainstream banks remain constrained by exposure limits and asset-quality concerns.
Vodafone Idea continues to engage lenders for longer-term funding to support its capex requirements. Despite government relief measures, including moratoriums and the conversion of a portion of spectrum dues into equity—raising the government’s stake in the company to 48.99 percent—the telecom operator remains dependent on asset monetisation and structured debt to meet its funding needs.
AGR Relief and Funding Needs Remain in Focus
The Supreme Court recently said the government could consider Vodafone Idea’s request for relief on adjusted gross revenue (AGR) dues, including a possible waiver of interest and penalties, stemming from liabilities arising out of the 2019 ruling that expanded the definition of revenue for levy calculations. In May, the company secured board approval to raise up to Rs 20,000 crore through equity or debt.
