Vodafone Idea in Talks With Banks for Loan Recast
Vodafone Idea has held talks with lenders, including consortium lead State Bank of India (SBI), for a possible recast of loans through a potential standstill on interest payments, longer repayment tenures or lower rates, two people familiar with the discussions told ET.
The recast, if approved, could ease the financial strain on the telco that has a funded exposure of nearly ₹14,000 crore. SBI alone has an exposure of about ₹11,000 crore.
“After the government extended relief to the telco, lenders believe that uncertainty over its future is over for now,” said an official aware of the discussions. “And if the promoter chips in with more equity or raises fresh funds, easier repayment terms on loan dues could be a definite possibility.”
Vi has also informed lenders that it has revived talks with global investors for raising funds that will be used for infrastructure enhancement.
Shares of Vi climbed 6.11% to ₹10.42 on BSE on Tuesday.
Under the Reserve Bank of India’s (RBI) June 2019 restructuring framework, banks can allow renegotiation of loan dues to improve the company’s liquidity if the promoter brings in equity.
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