Vodafone PLC (LON:VOD) is to raise €4bn through a convertible loan issue to finance the acquisition of Liberty Global's assets in Germany, Czech Republic, Hungary and Romania.
To mitigate dilution, the telecoms giant will have the option to buy back shares.
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Vodafone agreed to buy the cable networks almost a year ago for €18bn to expand its mobile, TV and broadband services and strengthen its hand against Deutsche Telekom in Germany.
The deal is expected to complete in the middle of this year.
Vodafone added the bonds will be issued in two tranches maturing no later than March 2021 and March 2022.
The conversion price will be based on an average between 4-6 March.