Vodafone Idea in Talks to Raise USD 2.9 Billion Loan to Strengthen Network: Report

Vodafone Idea (Vi) is in discussions with lenders to raise approximately Rs 250 billion (USD 2.9 billion) in long-term loans to upgrade its network infrastructure and compete more effectively with Reliance Jio and Bharti Airtel, Bloomberg reported, citing sources familiar with the matter.

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Also Read: Government Weighs Relief Options for Vodafone Idea Amid Survival Concerns

SBI to Lead Lending Consortium

The State Bank of India (SBI) is expected to lead a consortium of lenders for the funding, which will likely comprise a mix of domestic and foreign loans with a tenor of around 10 years. The move marks a renewed attempt by the telecom operator to secure financing after earlier plans were deferred due to concerns over its weak financials and substantial government dues, according to the report.

The fundraising efforts have gained momentum amid reports that the Indian government may offer relief to telecom firms on their outstanding statutory dues. Vodafone Idea has been steadily losing subscribers to competitors and is seeking capital to roll out faster networks and arrest the decline in its market share.

Also Read: Government Stake in Vodafone Idea Rises to 48.99 Percent After Fresh Equity Allotment

Government Stake and Fundraising

In April, the government increased its stake in Vodafone Idea to 48.99 percent by converting a portion of the company’s spectrum dues into equity. Despite this, the company continues to face significant financial stress.