According to industry sources, Vodafone Idea Limited (Vi) has prepaid a short-term loan of about Rs 27 billion to State Bank of India (SBI).
The move is expected to shore up lenders’ confidence as the operator urgently seeks fresh bank funds to tie up equipment supply deals for 5G networks. The company also has outstanding trade payables of Rs 150 billion, comprising dues to tower companies, network gear vendors and other suppliers.
With the government showing no signs of urgency in converting Vi’s accrued interest on deferred adjusted gross revenue (AGR)-related dues into equity, external equity funding appears to be further delayed. Therefore, the operator is planning to raise funds to cater to its 5G roll-out plans.
