New Delhi, November 29 (Read): Vodafone Idea Telecom Infrastructure, a wholly owned subsidiary of Vodafone Idea Limited (VIL), has reduced the size of its proposed bond issue for fundraising. The company had initially planned to raise around ₹50 billion through the bond route, but this has now been cut to ₹32 billion, according to a Reuters report. The move is said to be aimed at securing cheaper funding from lenders.

As per the report, the debt will be raised in multiple tranches. One portion will be raised through two-year bonds with a yield of around 12 percent. The remaining amount will be mobilised through bonds with a tenure of three years and two months at a yield of nearly 14 percent. The bond-raising exercise is expected to be completed by December 2025. These bonds will be guaranteed by Vodafone Idea and will also include a call option at the end of one year.

The funds raised through this bond issue are expected to be used for expansion purposes. However, the development has not yet been officially confirmed by Vodafone Idea. The company is expected to tap private credit funds for this fundraising. If the bonds are successfully issued by the end of December 2025, it could help the telecom operator boost its capital expenditure for network expansion.

Vodafone Idea has been trying to raise funds for the past few years to scale up its capital expenditure. While the company has already stepped up its capex, it has reportedly been facing difficulties in sustaining the pace due to challenges in raising fresh funds. It had earlier planned to raise about ₹25,000 crore through debt to roll out 4G and 5G services in new areas and to modernise its existing infrastructure.

The final decision on the company’s AGR (adjusted gross revenue) payments is also expected to be crucial for its financial future. The government is yet to take a final call on the matter, which will play a key role in determining the company’s near-term prospects.