Vodafone Idea seeks $1.8 billion of loans in next two years

Vodafone Idea Ltd. is in talks with lenders for loans totaling 150 billion rupees ($1.8 billion) in the next two years, people familiar said, as the billionaire Kumar Mangalam Birla-led wireless carrier seeks to turn around its unprofitable operations.

This would be the first move in a plan to raise 250 billion rupees overall in debt, with the proceeds helping to repay operational creditors, roll out a 5G network and bid for additional spectrum.

Fresh from the success of a $2.2 billion share sale last month, the joint venture between Vodafone Group Plc and Birla’s conglomerate has reached out to government-owned banks such as State Bank of India, Bank of Baroda and Punjab National Bank, as well as some private-sector lenders, according to the people aware of the development who asked not to be identified as the information is private.

State Bank of India may take the lead of a consortium with state-owned and private bankers, and the funds would be disbursed in tranches, the people said. Discussions are continuing and details of the fund raising, including size, could still change, they added.