As per industry sources, Vodafone Idea Limited (Vi) has appointed SBI Capital Markets to negotiate the restructuring of loans worth Rs 200-230 billion that the telco is due to repay within the next four years.
Reportedly, Vi has also sought an additional $500 million as loans for capital expenditure (capex) requirements. The company believes the capex requirement of $500 million to be critical to expand its 4G network and arrest subscriber losses to rivals.
Meanwhile, according sources, Vi is in the process of submitting a comprehensive restructuring plan that includes the recast of loans, standstill on interest payments, longer payment tenures and lower interest rates.
The move is part of Vodafone Idea’s overall capital-raising plans as the company tries to resurrect finances and operations, leveraging the relief package announced by the government in September. These discussions comes in the backdrop of company’s March-end deadline to raise equity capital for operations.
Besides, Vi and its lenders are looking to recast outstanding loans under the Reserve Bank of India’s June 2019 restructuring framework. Under this, banks can allow renegotiation of loan dues to improve the company’s liquidity if the promoter brings in equity.
