Vodafone Idea makes full payments of maturing NCDs to fund houses

Mumbai: Telecom major Vodafone Idea has made the complete payment on its debt papers maturing on Friday, with Franklin Templeton having exposure to a major chunk of these papers.

A Vodafone Idea spokesperson confirmed that the company had made the complete payment towards the NCDs (non-convertible debentures) maturing on Friday, but did not elaborate on the total amount paid.

Separately, she denied a Business Standard report which said the company had defaulted on rental, energy payments for June to tower firms.

Mutual fund schemes that had exposure to telecom major Vodafone Idea’s debt maturing on Friday have received the payment from the company, most fund houses confirmed as well.

A majority of this was due to Franklin Templeton Mutual Fund’s six schemes, which are being wound up. These schemes collectively received Rs 1,252.88 crore from Vodafone Idea, the fund house said in a note.

“Principal and Interest payment was received from Vodafone Idea Ltd for 8.25% Vodafone Idea Ltd on July 10, 2020. This amount (subject to deduction of operating expenses as per Note 1) shall be distributed to the investors in proportion to their holdings in the plans of the segregated portfolio,” Franklin Templeton said in a note.

Nippon India Mutual Fund also confirmed it had received the entire outstanding payment from Vodafone Idea. Separately, sources said UTI MF had also received payments to the tune of around Rs 161 crore from the telecom major.

"We have received 100% of our outstanding from Vodafone which is Rs 121 crore,” a Nippon India Mutual Fund spokesperson said.

Meanwhile, sources said UTI Mutual Fund had also received around Rs 161 crore from Vodafone Idea towards debt maturing on Friday.