American Tower Corporation (ATC) has recognised almost a $29 million unrealised gain in the second quarter (Q2) of calendar year 2023 on the optionally convertible debentures (OCDs) issued to it by Vodafone Idea Limited (Vi).
In February 2023, Vi had allotted OCDs worth Rs 16 billion to ATC’s wholly-owned India unit, ATC Telecom Infrastructure Private Limited. The proceeds are being used by Vi to clear its dues to the tower company. Vi owes ATC an estimated Rs 20 billion.
In a filing to the US Securities and Exchange Commission (SEC), ATC said that during the three months and six months ended June 30, 2023, the company recognised unrealised gains of $28.8 million and $13.1 million, respectively, for the Vi OCDs held as of June 2023. ATC said that the fair value of Vi’s OCDs at issuance was roughly $116.5 million, and that the significant input to the fair value is the Vi equity share price underlying the instruments, less a liquidity discount.
Further, ATC told SEC that Vi’s OCDs will mature in two tranches of Rs 8 billion each on August 27, 2023, and August 27, 2024.