Vodafone Idea Pursues $1.8 Billion in Loans Over Next Two Years

Vodafone Idea Pursues $1.8 Billion in Loans Over Next Two Years: The billionaire Kumar Mangalam Birla-led wireless carrier is seeking loans totaling 150 billion rupees ($1.8 billion) over the next two years.

In addition to repaying operational creditors, rolling out a 5G network, and bidding for additional spectrum, this is the first step in a plan to raise 250 billion rupees in total in debt.

As a result of a $2.2 billion share sale, Vodafone Group Plc and Birla's conglomerate have approached government-owned banks, including the State Bank of India, Bank of Baroda, and Punjab National Bank, as well as some private lenders, according to individuals who requested anonymity.

The State Bank of India may lead a consortium of state-owned and private banks, and the funds will be disbursed in tranches.

Fundraising details, including size, could still change, they said. Discussions are ongoing.

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When contacted on Thursday, a Vodafone Idea representative declined to comment.

Emails and texts seeking comments from the banks were not immediately responded to.

As part of its attempt to regain some of its lost subscribers in India's wireless market, which is dominated by Asia's richest billionaire Mukesh Ambani's Reliance Jio Infocomm Ltd., Vodafone Idea said earlier this year it planned to raise 250 billion rupees in debt.

The loan comes after the smallest of India's three wireless carriers successfully raised 180 billion rupees via a follow-on public offering that was oversubscribed more than six times.

According to the people, the ambitious plan to raise 250 billion rupees via debt remains intact despite the success of the offer.

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