Vodafone Idea Slashes Bond Plan to ₹32 Billion Amid Cheaper Funding Hopes

Vodafone Idea Telecom Infrastructure, a wholly-owned subsidiary of Vodafone Idea (Vi), has reduced its planned bond sale to ₹32 billion (from ₹50 billion), aiming to raise funds before year-end through a mix of 2-year (12% yield) and 3-year/2-month (14% yield) instruments. The bonds are guaranteed by Vi and targeted at private credit funds. The downsizing comes as the company expects cheaper financing from banks in 2026, following a recent Supreme Court ruling allowing the government to review Vi’s full AGR (adjusted gross revenue) dues—including penalties and interest—raising hopes for financial relief. Currently struggling with legacy dues and losses, Vi had earlier received board approval to raise up to ₹200 billion via equity or debt. In April, the government converted part of its spectrum dues into equity, increasing its stake to 48.99%. With this scaled bond issue focused on expansion, Vi is navigating a delicate turnaround path—leveraging short-term market funding while banking on long-term policy support to stabilize its finances and compete in India’s consolidated telecom sector.