Operators

Vodafone Idea unit seeks $570m debt raise to fund 5G rollout

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Vodafone Idea unit seeks $570m debt raise to fund 5G rollout

Vodafone Idea’s infrastructure subsidiary is reportedly seeking loans worth INR50 billion (US$570 million) to finance network expansion.

Sources told Reuters that Vodafone Idea Telecom Infrastructure plans to issue two- and three-year bonds, raising INR30 billion and INR20 billion respectively. The company will turn to private credit funds and pay annual interest of around 12% to 14%.

The funds will be allocated as capital expenditure to support the operator’s 5G rollout, which is targeting deployment across 17 priority cities by September.

Reuters noted that billionaire Kumar Mangalam Birla, who chairs Vodafone Idea, previously secured board approval to raise up to INR200 billion through a mix of equity and loans.

Vodafone Idea has been weighed down by heavy spectrum-related debt following a landmark Supreme Court ruling on Adjusted Gross Revenue (AGR), which left India’s operators collectively saddled with around US$13 billion in dues.



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