NBFCs Lead Rs 3,300-Crore Vodafone Idea Bond Issue Amid Bank Constraints: Report

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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Also Read: Vi Subsidiary VITIL Raises Rs 3,300 Crore Through NCD Issue

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.

Also Read: Vodafone Idea Support Not Immediate as Government Adopts Cautious Approach