Two people familiar with the matter said that a consortium of Oaktree Capital Management and Verde Partners has invested at least $2 billion in cash-Vodafone Idea Ltd. (VI) by purchasing hybrid debt securities.
The Oaktree-led consortium is said to have offered $2-5 billion to the telecom operator, which owes more than $50,000 crore to the Department of Telecommunications in back fees.
Vodafone Idea’s financial position deteriorated sharply after India’s apex court ordered the government to pay billions of dollars of arrears in October last year.
However, the apex court amended its order in September to allow the affected telecom to pay arrears of more than 10 years, which relieved the operator.
Nevertheless, raising funds to upgrade its network and pay the government is crucial to the company’s survival.
A spokesman for Vodafone Idea, Oaktree and Verde Partners refused to comment.
In September, Vodafone Idea said it planned to raise crore 25,000 crore by selling bonds and shares. The fundraising process, however, is still in its early stages. The telco plans to raise $2.5 billion by selling convertible bonds, and a similar amount by selling shares to institutional investors.
The stock grew 4.4% in the first day.