Vodafone Idea In Talks With Banks Like SBI PNB HDFC Bank For Its Loan Refinancing

Vodafone Idea: Vodafone Idea (Vi) has started fresh discussions with the debtors for refinancing of its loans. Under this, the company is in discussion with State Bank of India, Punjab National Bank and HDFC Bank. The company has huge debt and Vodafone Idea (Vi) also owes to the tower company.

Vi needs capital

According to a report in Economic Times, bankers having knowledge of the matter have given information about this. In fact, Vodafone Idea is under debt burden and it needs huge capital to run the company and work on new schemes. The company wants to achieve this through refinancing. Vodafone Idea is currently in need of capital to repay capital to its vendors. Vodafone Idea has to repay the dues of tower company Indus Tower and network equipment manufacturers Ericsson and Nokia and with this thought the company is in the process of refinancing its loan.

Debt refinancing necessary for Vodafone

Vodafone Idea has time till September 2023 to repay the loan of Rs 9600 crore. If the company is unable to arrange for refinancing of its debt, then a negative impact will be seen on its plans and capacity for further capital expenditure.

What is the update regarding 5G services

Due to Vodafone’s outstanding debt, the company is unable to finalize the site for the supply of its 5G equipment and tower installation, which are very important to start its 5G services. Vodafone will now face tough competition in the field of 5G in the country as its rivals Reliance Jio and Bharti Airtel have started 5G services in October last year.

In December 2022, the company approached the country’s largest bank SBI to take a loan of Rs 15,000 to 16,000 crore. However, the bank had sought an explanation from the company regarding the government’s stake in Vodafone Idea.

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