Vodafone Idea Unit Seeks $570 Million Debt for 5G Expansion

Vodafone Idea Telecom Infrastructure, a subsidiary of India's third-largest telecom operator Vodafone Idea, is in advanced talks to raise approximately Rs 5,000 crore ($570 million) through debt financing to support its ongoing turnaround plan. The funds, raised via bond sales with two- and three-year tenors offering coupons around 12% to 14%, will be primarily used for capital expenditure and selective 5G network expansion across key cities by September 2025. This debt raise aims to ring-fence core infrastructure assets and attract investors with greater security than the main operating company. Vodafone Idea has faced significant financial challenges due to large liabilities, a shrinking subscriber base, and Supreme Court rulings on Adjusted Gross Revenue (AGR) dues, with the government converting part of these dues into equity, raising its stake to 48.99%. Despite this relief, the company requires fresh capital to remain competitive against rivals Reliance Jio and Bharti Airtel, while also managing upcoming large AGR payments starting in 2026. Parallel talks with banks for additional loans are ongoing but await government and regulatory clarity before proceeding.