Vodafone Idea bonds resume trading as investors return post SC relief

Mumbai: Vodafone Idea’s bonds have resumed trades for the first time in nearly a year, indicating revival of investor interest in the debt instruments of the telco that got a deadline breather on its obligations after the apex court set a staggered payments timeline on long-pending statutory dues running into billions of dollars.

The bonds are yielding 27%, rates normally associated with junk bonds, but still lower than 42.9% on October 16 last year. For about a year, these bonds did not find any takers in the secondary market.

Secondary market trades in these bonds resumed on September 9 this year. Since then, about eight such trades have taken place, show data compiled by JM Financial. About ₹140 crore of bonds were collectively traded at yields of up to 27%.