The board of Vodafone Idea Limited (Vi) has given a go-ahead to the issue of rupee-denominated, optionally convertible, unsecured, unrated and unlisted debentures (OCDs) to American Tower Corporation (ATC) to raise Rs 16 billion. The operator intends to use the funds to repay dues to ATC, which stand at less than Rs 20 billion.
According to a notice given to the stock exchanges, Vi will issue debentures having a face value of Rs 1,000,000 each, in one or more tranches, aggregating up to Rs 16 billion, convertible into equity shares at a conversion price of Rs 10 per equity share. However, the preferential bond issue to ATC is subject to conditions, including the government converting the interest from deferment of the telco’s adjusted gross revenue (AGR) and spectrum dues into equity.
The operator further informed that the OCDs will carry a coupon rate of 11.2 per cent per annum, payable semi-annually during its term. The maximum term of the OCDs is 18 months from the date of issue and allotment of the first tranche.
Besides, the operator still owes about Rs 70 billion to Indus Towers, which has provided ultimatum to cut the telco’s access to its sites from November 2022, unless the dues are cleared.
