Tata Capital has reportedly invested around Rs 5 billion in Vodafone Idea Limited’s (Vi) latest bond issuance. The participation highlights growing non-bank exposure to stressed yet systemically important companies that continue to face difficulty accessing funds from conventional banks.
Similarly, JM Financial Credit Solutions, Aditya Birla Capital and Hero Fincorp are said to have committed approximately Rs 4 billion each, while Nomura Capital took part in both tranches through its non-banking financial company (NBFC) platform as well as via the foreign investor route.
Beyond NBFCs, the issue attracted interest from mutual funds and overseas investors, with the bonds privately placed through Vi’s wholly owned subsidiary, Vodafone Idea Telecom Infrastructure. The offering was split into two secured tranches: series A comprised Rs 30 billion of notes with a 12 per cent coupon, while series B consisted of Rs 3 billion carrying a 7 per cent coupon.
The securities have a tenor of roughly 21 months and include a call option exercisable after one year. The proceeds will be utilised to repay business consideration to Vi following the transfer of fibre assets to the infrastructure arm, and to support the telecom operator’s capital expenditure plans and business expansion. The transaction was arranged by JM Financial Products.
Meaning, the deal reflects a rising risk appetite among NBFCs and mutual funds seeking higher yields, at a time when banks remain restricted by exposure ceilings and asset-quality considerations.
