Repayment assurance lifts Vi Bonds:

Vodaphone Idea have assured the bondholders that all the principal value and interest payment will be matured that are coming due in later year. Bonds worth ₹674 crore where traded in the early months of year 2021 as compared to October-December of the previous year has shown transaction worth just ₹90 crore. The yield has came down to 26% – 29% from the October 2019 having YTM of 42.9%. Investors have gained confidence in this company as they have not defaulted or delayed and payment in due.
The largest trade happened on 3rd March 2021 in telecom sector worth ₹263 crore at 15% price discount with yield of 28.78%. This rise in bonds are attracting many wealthy and foreign investor to take on this bet as Vi has never defaulted on their bonds.
Vodaphone needs to raise additional capital to remain stabilize at cliff in their business sector. They have added new customer in this year after a gap of 14 months with no new customer. Local lenders are averse to lend any new money with no capital flow from foreign institution of by parent company in their Convertible bonds.
Vodaphone is said that they have approached US based private equity funds KKR and Carlyle Group for ₹14500 – ₹18100 crore after its recent talk with Oak hill – led consortium went fail.