Vi to issue debentures worth Rs 1,600 cr to ATC after condition waiver

OCDs to be converted into equity for preferential allotment to ATC, will carry 11.2% coupon rate and have a tenure of 18 months

The board of Vodafone Idea (Vi) on Tuesday approved the issue of optionally convertible debentures (OCDs) worth Rs 1,600 crore to ATC Telecom Infrastructure Private Limited after the latter waived a condition that was preventing its issuance.

The proposal was passed a second time as the previous shareholder resolution for the capital raise lapsed in December.

The issue of OCDs was conditional to the issue of 33 per cent equity to the government upon conversion of interest on adjusted gross revenue dues. However, since the equity issuance to the government is held up, the issue of OCD too got stuck.