On Friday, the board of loss-making telecom operator Vodafone Idea approved a proposal to raise up to Rs 1,600 crore from mobile tower firm ATC Telecom Infrastructure, the company said in a regulatory filing.

“The Board of Vodafone Idea Limited, at its meeting held today (21 October 2022), has, among other things, approved the issuance of optional convertible, unsecured, unrated and unlisted bonds denominated at up to Rs 16,000 in nominal value for Rs 10,00,000 shares each, in one or more tranches, totalling up to Rs 1,600 crore, to be converted into shares to ATC Telecom Infrastructure Private Limited at a conversion price of Rs 10 per share,” VIL said.

The optional convertible, unlisted, unsecured and unrated bond (OCD) has a coupon rate of 11.2% per annum, payable semi-annually over its term. “The maximum duration of OCD is eighteen (18) months from the date of issue and distribution of the first OCD,” the document said.