Vodacom Weighs Bond Issue, Changes Dividend Policy to Fund Growth

Vodacom Group Ltd. is mulling a bond issue and will pay a smaller proportion of its earnings in dividends as South Africa’s market-leading wireless carrier looks to finance new growth plans.

Funds are needed to complete the acquisition of a majority stake in Vodafone Egypt -- a $2.7 billion deal agreed with U.K. parent Vodafone Group Plc last year -- and to pay for newly auctioned high-speed internet spectrum in its home market, Chief Financial Officer Raisibe Morathi said in an interview on Monday.