Home / Business and Economy / Tata Capital Leads ₹3,300 Cr Bond Sale for Vi
Tata Capital Leads ₹3,300 Cr Bond Sale for Vi
22 Dec
Summary
- Tata Capital invested ₹500 crore in Vodafone Idea's bond sale.
- Non-bank lenders show increasing exposure to stressed companies.
- Proceeds will fund capex, business growth, and debt repayment.
Tata Capital has significantly boosted Vodafone Idea's financial standing by investing approximately ₹500 crore in its recent ₹3,300 crore bond sale. This substantial contribution underscores a growing trend of non-bank financial institutions (NBFCs) providing crucial funding to essential companies facing financial challenges, often struggling to secure loans from traditional banks. The participation of other NBFCs like JM Financial Credit Solutions, Aditya Birla Capital, and Hero Fincorp, each committing around ₹400 crore, further emphasizes this emerging support network.
The bond issue, structured in two secured tranches, saw Series A notes priced at a 12% coupon and Series B at 7%, with a tenor of approximately 21 months. The funds raised are earmarked for critical purposes, including the repayment of business consideration following the transfer of fibre assets and to support Vodafone Idea's capital expenditure (capex) plans and overall business expansion. This strategic fundraising demonstrates the increasing risk appetite among NBFCs and mutual funds, who are actively pursuing higher yields in the current market.
