A consortium of Indian lenders led by the State Bank of India (SBI) has agreed to extend approximately $3.5 billion (₹29,000+ crore) in debt financing to Vodafone Idea Ltd. (Vi) to support the cash-strapped telecom operator’s business turnaround. According to sources familiar with the matter, the banking group also includes Union Bank of India Ltd. and the National Bank for Financing Infrastructure and Development (NaBFID). The loss-making operator—India’s third-largest wireless provider by subscribers—intends to utilize the 10-year loan package to upgrade its network infrastructure and improve market competitiveness against top rivals Reliance Jio Infocomm Ltd. and Bharti Airtel Ltd. The funding arrangement comes with specific covenants, including a requirement that billionaire Kumar Mangalam Birla remain chairman throughout the loan tenure, along with repayment guarantees in the event of default. The massive debt package builds on crucial government interventions earlier this year that capped Vi’s past spectrum payout liabilities, following a previous conversion of ₹37,000 crore in outstanding dues into equity that elevated the Indian government’s stake in the carrier to 48.99%. Coupled with narrowing losses—including a smaller-than-expected first-quarter loss of ₹3,750 crore ($394 million)—the regulatory relief and pending credit facility have fueled investor confidence, driving Vodafone Idea’s market capitalization up to around ₹1.6 trillion.
Vodafone Idea Secures $3.5 Billion Loan Package to Upgrade Network and Tackle Rivals
