Vodafone plans to raise £500 million of new debt through new equity-linked bonds due in 2020.
The telco will use the funds for general company purposes and purchasing cash-settled call options.
It will pay between 0.4 percent and 1.2 percent interest per year. The conversion price will be 30 percent above a share reference price that Vodafone will announce around 3 December.
Conversion rights on the bonds will be settled in cash, so Vodafone will not issue any new Vodafone shares meaning that existing shareholders will not see their holdings diluted.
Morgan Stanley is the sole global coordinator for the offering while HSBC is joint bookrunner.
