Fundraising plans of Vodafone Idea hit hurdles

Kolkata | Mumbai: Vodafone Idea’s (Vi) big-ticket fundraising plans have hit an air-pocket following differences with key members of the prospective lenders’ consortium such as Oak Hill and Varde Partners over funding terms and furnishing of guarantees in case of payment defaults, people aware of the matter said.

While talks between the two sides have not fallen through completely, the telecom JV between UK’s Vodafone Group and Aditya Birla Group is already exploring other potential funding partners and is confident of securing funding by the end of this month, one of the people said. The person added that there is surplus cash with US funds, and the Indian telecom business outlook is looking up amid surging data consumption growth, post-pandemic.

The exclusivity period for talks between the group of potential lenders consisting of Oak Hill, Pacific Investment Management Co, Sixth Street, Twin Point Capital and Varde Partners and Vodafone Idea ended February 28, without any deal.