Deadline for Vodafone Idea’s funding talks extended to February 28

Kolkata | Mumbai: The deadline for exclusive talks between Vodafone Idea (Vi) and a foreign lenders’ consortium led by Oak Hill Advisors for finalising the terms of a $2-billion credit line for the telco has been extended to February 28 from January 31, said three people with direct knowledge.
“The lock-in for exclusive talks has been extended as lenders are keen to close the deal but also want some safeguards and business milestones in place to protect their potential investments, especially as Vi’s financial struggles seem far from over as it continues to lose revenue and users,” a person close to consortium told ET.
An investment banker, who works closely with the telco, said raising debt would be a more realistic option for Vi in the near term as equity financing would hinge on fresh capital infusion by its co-promoters, Vodafone Group Plc and the Aditya Birla Group.
‘Key criteria for equity funding’
An improved balance sheet and competitive position are other key factors to attract equity funding.