Vi turns to private credit funds as bank talks stall
Vodafone Idea (Vi) is now eyeing private credit funds to raise part of the ₹25,000 crore it originally hoped to get from banks.
Traditional lenders have hit pause because Vi still owes a hefty ₹75,000 crore in AGR dues as of June 2024.
With cash running tight, Vi is looking for faster ways to keep its network upgrades going.
Vi's debt and AGR dues
Vi wants to spend ₹50,000-55,000 crore on expanding its 4G and 5G networks but is weighed down by total debt of ₹1.7 lakh crore and growing AGR payments.
Starting FY26, annual AGR dues will jump to ₹18,000 crore—almost double Vi's yearly cash flow of just ₹9,200 crore.
Private credit firms like Davidson Kempner and Oaktree are in early talks with Vi for short-term funding while bank discussions drag on.
Vi's capex plans and government support
In Q1 FY25 alone, Vi spent ₹2,440 crore on capex and aims for a total of ₹5,000-6,000 crore in the first half of the year.
The government has been helping out since 2019 with spectrum payment deferrals and reforms.
Outgoing CEO Akshaya Moondra says resolving AGR issues before March 2026 is crucial, as it is key for unlocking full bank support and keeping the network investments on track.