Vi’s board of directors approve to raise Rs 1600 Cr from ATC

Vodafone Idea got the board of directors’ approval to raise Rs 1,600 crore from American Tower Corporation (ATC) via optionally convertible debentures (OCDs) and use the proceeds to pay the dues of the tower company.

The optional convertible, unlisted, unsecured and unrated bond has a coupon rate of 11.2% per annum, payable semi-annually over its term. The document said, “The maximum duration of OCD is 18 months from the date of issue and distribution of the first OCD.”

The board approved the issue of 16,000 OCDs having a face value of Rs 10 lakh each to raise Rs 1,600 crore. The funds raised via debentures will be used to pay pending dues of ATC under the master lease agreement and any remaining amount would be used for general corporate purposes.

Last month, Indus Towers asked Vi to pay up its dues by November or face disconnection. Vi had then said it had sought softer payment terms and was in ongoing discussions with the tower company. The funding delays also resulted in the telco failing to close contracts with telecom gear makers Ericsson and Nokia for 5G equipment.