Vodafone Idea Seeks To Refinance Loans Worth Rs 3-4K Cr: Report

Vodafone Idea has started discussions with Indian banks including State Bank of India (SBI), Punjab National Bank (PNB) and HDFC Bank to refinance loans worth Rs 3,000-4,000 crore, according to a report by a leading media house.

The refinancing will help the telco “free up some cash”, which has to make payments to Nokia, Ericsson and Indus Towers, according to a report by the Economic Times (ET).

Vodafone Idea has to pay Rs 7,000 crore to Indus Towers and its debts amounted to Rs 2.2 trillion, as noted till September last year.

The telco also has Rs 9,600 crore debt payment, which is to be completed in September this year.

The payments have stayed the telco’s plans to bring together its 5G equipment supplies and finalise tower site pacts.

Recently, Vodafone Idea’s accrued interest towards adjusted gross revenue (AGR) arrears was converted into government equity. The transaction, completed on 7 February, gave Centre 33.44 per cent stake in the telco.