In a blow for Vodafone Idea, Power Finance Corporation (PFC) and its listed unit Rural Electrification Corp (REC) turned down the struggling telecom operator’s request for a long-term loan due to a ‘mismatch’ with internal underwriting guidelines and less-than-desired securities as collateral, said a report on October 25.
The Economic Times, citing top sources, said the two lenders asked the country’s third-largest telecom operator to provide an extra cover of corporate guarantees to protect the commitments from any future defaults.
Both the lenders are infra focused and specialise in power-related projects, ET said.
The paper had earlier reported that the telecom operator has asked for Rs 25,000-crore loan to cover its capital expenditure and maintenance cost for the next three years.
Moneycontrol could not independently verify the report.
Earlier, Moneycontrol had reported that the company has reached out to new lenders, including public sector non-banking financial companies, who have shown “keen interest”. The firm is continuing to be in advanced discussions with a consortium of banks—of existing lenders led by State Bank of India—to raise Rs 35,000 crore in term loans and non-fund-based loans or bank guarantees.
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