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VodaIdea in talks with banks to refinance ₹3-4k cr loans
February 13, 2023
This is expected to free up some cash for the telco, which needs to pay urgently to Indus Towers, Nokia and Ericsson. In September this year, Vi must pay ₹9,600 crore worth of debt to different lenders. It owes ₹7,000 crore to Indus Towers alone. As of September 2022, its total debt stands at ₹2.2 trillion.
“Vi is in fresh, preliminary talks with lenders seeking the rolling over of some bank debt, but they are yet to submit a formal refinancing proposal discussions are also on for a softening of loan repayment terms,” a senior banker told ET.
This comes just days after the Centre allowed the telco to convert its outstanding interest payment towards adjusted gross revenue (AGR) to equity. It would make Centre Vi’s largest shareholder with a 33.44 per cent stake.
Reports also stated that the company’s owners, UK-based Vodafone and India’s Aditya Birla Group, have committed to putting ₹5,000 crore into the telco. This could encourage third parties to invest in the company, which needs cash urgently to compete with Reliance Jio and Bharti Airtel.
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