Vodafone Idea unit trims bond sale as cheaper funding options emerge

Details: Manny Pham; Category: Operators; 28 November 2025; 28690 views

Vodafone Idea Telecom Infrastructure has scaled back the size of its planned bond issuance, with the company now expected to raise around INR32 billion (US$359 million) instead of the previously targeted INR50 billion, Reuters reported, citing sources familiar with the matter.

Most of the bonds will carry 12% interest for two years, while the remainder will be issued with a 14% yield and a tenor of three years and two months. Both tranches include a call option after the first year and are backed by a guarantee from Vodafone Idea. The operator aims to complete the sale by December, with private credit funds expected to be the main buyers.

Proceeds will be used to support network expansion, the sources said.

Vodafone Idea continues to face financial pressure stemming from a 2019 Supreme Court ruling that broadened the definition of adjusted gross revenue, resulting in sizable dues to the government. The operator has struggled to clear outstanding spectrum and revenue-sharing payments, prompting the Indian government to convert debt into equity and raise its stake to 48.99%.