Vodafone Idea on Monday extended the deadline for repayment of 8,000 optionally convertible debentures (OCDs) issued to tower company ATC, by one year, according to exchange filing by the telecom operator.
The new date for redemption of OCDs to ATC will be August 28, 2024, which is 18 months from the date of allotment of OCDs to the tower company.
“We wish to inform you that, the Company and ATC have agreed to extend the period of redemption of 8000 OCDs from 6 months, from the date of allotment of the first tranche of OCDs (which was falling due on 28th August, 2023), to 18 months from the date of allotment, subject to certain conditions as mutually agreed,” Vodafone Idea said in an exchange filing.
Redemption of debentures means repayment of the principal amount as well as interest to the debenture holder as per the agreed time period.
On February 28, the company had issued and allotted 16,000 OCDs to ATC. Through the issue of equity convertible debentures, Vodafone Idea had offered to settle Rs 1,600 crore dues with equipment vendor ATC.
Vodafone Idea owes about Rs 2,000 crore to ATC. The amount of Rs 1,600 crore, if unpaid in 18 months, would also give an option to ATC to convert the dues into equity at a price of Rs 10 per share.
The equity convertible debt bonds will also carry a coupon rate of 11.2% per annum payable every six months during its term.