Loan for Vodafone Idea: Banks to check liabilities repayment schedule first

Notwithstanding the successful follow-on public (FPO) offer, cash-strapped Vodafone Idea (Vi) may face some difficulties in raising funds as commercial banks will first look into the telco’s liabilities and their repayment schedule over the next 4-5 years before deciding on extending loans.

According to a top official from a large public sector bank, lenders will need comfort that the telecom player will be in a position to repay debt before taking a decision on extending loans. The company will need to raise about Rs 25,000 crore through loans.