Vodafone Idea explores $1.8 billion loan deal to bolster operations: Report

Vodafone Idea loan news: Indian telecom giant Vodafone Idea is reportedly in discussions with lenders to secure loans amounting to Rs 15,000 crore over the next two years, Bloomberg News reported, quoting people familiar with the matter.

The potential loan arrangement signals the company's ongoing efforts to address its financial challenges and reinforce its operations amidst stiff competition in India's telecommunications sector.

According to the report, Vodafone Idea has initiated talks with prominent state-run lenders including State Bank of India (SBI), Bank of Baroda, and Punjab National Bank (PNB), along with certain privately-held banks.

It is anticipated that SBI may lead a consortium of lenders, with the funds likely to be disbursed in multiple tranches. Nevertheless, discussions are ongoing, and specific details of the loan arrangement are subject to change.

The reported loan initiative comes on the heels of Vodafone Idea's earlier announcement in February, wherein the debt-laden telecom carrier outlined plans to raise over $5 billion. This capital infusion is earmarked for the rollout of 5G network services and the expansion of its existing 4G coverage.

Such strategic moves are aimed at rejuvenating the company's prospects and narrowing the gap with its competitors, including Bharti Airtel and Reliance Industries' telecom arm, Reliance Jio.

Vodafone Idea witnessed robust investor interest in its follow-on share sale, which emerged as India's largest to date. The offering attracted bids totaling 6.36 times the shares on offer, underscoring investor confidence in the company's potential turnaround efforts and future prospects.