Vi eyes fresh debt to power network fight

Vodafone Idea Ltd. is considering raising debt financing to accelerate growth, people familiar with the matter said, following the Indian government’s decision to cap annual payouts for past spectrum fees.India’s third-largest mobile phone operator by users may seek the financing from local and global lenders, the people said, asking not to be identified because the deliberations are private. Vodafone Idea plans to use part of the proceeds to improve its network and better compete against larger rivals Bharti Airtel Ltd. and Reliance Jio Infocomm Ltd., the people said.Also Read: Vodafone Idea confirms AGR relief, says Rs 124 crore to be paid annually over next 6 yearsThe wireless operator that’s part of billionaire Kumar Mangalam Birla’s conglomerate has been in talks with New York-based Tillman Global Holdings about a possible stake stake valued at several billion dollars, the Economic Times reported in November. The investment was subject to the government providing a financial package to cover all of Vodafone Idea’s liabilities, according to the report.While Vodafone Idea has shifted focus toward other options including raising debt, a potential equity investment may still take place, the people said. TGH, as Tillman Global Holdings is known, remains in talks with the company’s top shareholders about making a large equity investment, one of the people said.A representative for Vodafone Idea didn’t have any immediate comment, while TGH declined to comment.To help prevent India’s telecom sector from becoming a duopoly, Narendra Modi’s government on Friday agreed to cap yearly payments till 2035 for past spectrum fees, granting the struggling carrier a critical lifeline. The government is the largest shareholder in the company with a 49% stake, followed by Vodafone Group Plc and Aditya Birla Group.