Debt-ridden telecom major Vodafone Idea is considering tapping the overseas convertible bonds market to raise between $750 million (Rs 5,500 crore) and $1 billion (Rs 7,500 crore) to repay its loans and vendor dues, sources told The Economic Times.
The telco is considering this option “in early February as it needs immediate funds for investing in its networks, making payments to vendors and arresting subscriber losses”, people aware of the matter told the publication.
This comes days after the company decided to convert adjusted gross revenue (AGR) and spectrum interest payments into government equity, giving the Centre a 35.8 per cent stake in the company, a move that has soothed bond investors.
VIL Managing Director and CEO Ravinder Takkar told reporters in a virtual briefing that there is no condition in the Telecom Department's letter on equity conversion option that allows for board seats for the government. The existing promoters are fully committed to managing and running the company's operations, he asserted.
Vodafone Idea was in talks with many PE players for equity and debt funding but no deal has been finalised yet.
“The company is trying to tie up capital by the end of March but until that happens, it needs to keep generating funds as it has to pay its vendors and meet other network expenses,” a source told the paper.
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(Published 14 January 2022, 07:57 IST)
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