Vodafone Idea Moves Closer To Raising ₹45,000 crore As SBI Agrees To Sanction Its Share Of Loan
Vodafone Idea (Vi) has made progress towards securing the funding required for its planned network expansion, with State Bank of India (SBI) agreeing to sanction its portion of a proposed loan package. However, the funds will be released only after the telecom operator secures the remaining financing from private-sector lenders, Bussiness Standard reported. The development comes as Vi seeks to…
Vodafone Idea has advanced towards raising ₹45,000 crore to fund its planned network expansion, with State Bank of India (SBI) agreeing to sanction its share. However, Vi must first secure remaining financing from private-sector lenders, according to Business Standard. The funding plan will be crucial as the Indian government holds nearly 49% of Vodafone Idea after converting its debts into equity.
Promoter-group entities provided guarantees to SBI, overcoming earlier hurdles, but the guarantee is seen as a sign of promoter support rather than strong credit. Private banks demand larger backing from major promoter-group companies and letters of comfort. Vi is currently negotiating with three groups of lenders: SBI-led public-sector banks, domestic private banks, and overseas lenders through external commercial borrowings.
The telecom operator has already raised Rs 6,400 crore in its initial tranche, including promoter warrants and debt from Indian private banks and foreign lenders.
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