Vodafone Idea unit slashes bond issue to ₹3,200 crore, eyes December close amid bank funding hopes

, a wholly-owned unit of Vodafone Idea , has reduced its planned bond sale size to around ₹3,200 crore ($359 million) from ₹5,000 crore, anticipating cheaper bank loans in 2026 following potential AGR dues relief. The debt will be raised via two-year bonds at ~12% yield and three-year-two-month bonds at ~14% yield, both with a one-year call option and guaranteed by the parent company, targeting private credit funds for expansion.​ Funding context and timeline Placement expected before end-December; proceeds earmarked for network expansion amid ongoing financial pressures from spectrum and AGR dues.​ Supreme Court recently indicated openness to Vodafone Idea's AGR relief request (including penalties/interest), boosting confidence for lower-cost bank funding next year.​ Background: Vodafone Idea approved ₹20,000 crore equity/debt raise in May; government holds 48.99% stake after converting spectrum dues.​ Strategic implications This calibrated debt tap balances immediate capex needs with optimism on judicial/government relief, potentially stabilizing the carrier's balance sheet amid competitive 5G rollout pressures. Investors watch court outcomes and lender appetite for execution signals. Source: The Economic Times No Recommendations