Vodafone Idea prepays SBI’s loan of ₹2,700 crore

vodafone-idea-in-talks-with-banks-for-loan-recast

Share This Post

Loss-making In an effort to boost lender confidence, Vodafone Idea has repaid a short-term loan to SBI for about 2,700 crores. The company is urgently seeking new bank financing to close equipment supply deals for 5G networks and to pay off some of its close to 15,000 crore in trade payables, which include debts to tower companies, network gear vendors, and other suppliers.

External equity funding appears to be further delayed because the government doesn’t appear to be in a hurry to convert Vi’s accrued interest on postponed AGR-related debt into equity. This forces the telco to arrange additional financing in order to solidify its 5G aspirations.

Vi’s trade payables, meanwhile, increased nearly 13.6% sequentially to 14,956.2 crore in the June quarter. These payables, which are a component of Vi’s current liabilities, include payments owed to tower companies and network vendors/other suppliers. At the end of the June quarter, those amounts were expected to be roughly $9,500 crore and $5,500 crore, respectively.

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore