Vodafone Idea gets board of directors’ nod to raise Rs 1,600 cr from ATC

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

This comes as a shot in the arm for the financially-stressed telco which has so far struggled to raise capital from investors.

The board approved the issue of 16,000 OCDs having a face value of Rs 10 lakh each to raise Rs 1,600 crore. These would be convertible into equity share of Rs 10 each that will be allotted to ATC Telecom Infrastructure Private Limited on a preferential basis. The debentures will have a coupon rate of 11.2 per cent per annum and will have a term of 18 months.