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Vodafone Idea plans to secure Rs 15,000 cr loans in 2 years

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In Short:

Vodafone Idea Ltd. is seeking loans of 150 billion rupees ($1.8 billion) in the next two years to help improve its operations. They plan to raise a total of 250 billion rupees in debt to repay creditors, expand their network, and bid for spectrum. After a recent successful share sale, they are in talks with banks for the loan, with State Bank of India likely leading the consortium.

Vodafone Idea Ltd. in Talks for $1.8 Billion Loans to Revamp Operations

Vodafone Idea Ltd. is currently in discussions with lenders to secure loans amounting to 150 billion rupees ($1.8 billion) over the next two years. This move comes as the company, led by billionaire Kumar Mangalam Birla, looks to improve its unprofitable operations.

Plan for Debt Financing

The company aims to raise a total of 250 billion rupees through debt financing. The funds will be used to repay operational creditors, invest in a 5G network rollout, and participate in spectrum auctions.

Lender Engagement

Vodafone Idea has approached government-owned banks like State Bank of India, Bank of Baroda, and Punjab National Bank, along with some private-sector lenders for this financing. State Bank of India is likely to lead a consortium involving both state-owned and private banks, with the funds being disbursed in tranches.

Response from Stakeholders

When contacted for comments, a Vodafone Idea representative refrained from providing a statement. Similarly, spokespersons for the banks mentioned did not respond to requests for comments.

Future Plans and Market Dynamics

Earlier this year, Vodafone Idea expressed its intention to raise 250 billion rupees through debt financing to regain lost subscribers in India’s competitive wireless market. Despite a recent successful share sale, the company remains committed to its debt-raising target.

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