Vodafone Idea Limited (VIL) has paid Rs 28.5 billion in principal and interest to seven of its bondholders, including Franklin Templeton India. The payout was made to mutual fund (MF) schemes of Franklin Templeton, UTI and Nippon, which had exposure to debt paper of the telco.
To this end, Franklin Templeton India received Rs 12.52 billion, UTI MF received Rs 1.66 billion and Nippon India MF received Rs 1.21 billion. According to MF, these part payments will be credited to investors’ accounts in the coming week.
Among MFs, Franklin Templeton had the biggest exposure to VIL. The repayment was part of the Rs 35 billion non-convertible debentures sold by Vodafone Idea in 2015 and matured on July 10, 2020. Further, UTI MF and Nippon had dues worth Rs 5.51 billion and Rs 2.41 billion, respectively.
According to Franklin Templeton, it has received the full value of the principal due, along with interest for the period June 12, 2020, to July 9, 2020. The amount will be distributed among investors in proportion to their holdings in the plans of the segregated portfolios.
On June 12, 2020, Franklin Templeton had received an interest payment of about Rs 1.02 billion from VIL. UTI MF and Nippon India MF received Rs 135 million and Rs 93 million, respectively.