Reliance Communications Ltd (RCom) has drawn down $255 million (Rs1,155 crore) by way of external commercial borrowing (ECB) to part refinance rupee resources used for 3G Spectrum fee payment to the Department of Telecommunications (DoT), government of India. This loan is funded by a consortium of banks led by Australian and New Zealand Banking Group Ltd, BNP Paribas, Credit Agricole Corporate and Investment Bank, DBS Bank Ltd and Intesa Sanpaolo S.p.a.
RCom will benefit from extension of maturity, and substantial savings in interest costs from this facility.
In addition to the above, RCom had earlier signed a memorandum of understanding (MoU) with CDB on 15 December 2010 during the visit of the Chinese Prime Minister to India, to refinance $1.33 billion paid for 3G Spectrum to DoT. The MoU also covers financing of up to $600 million towards equipment and services to be procured from Chinese vendors like ZTE Corporation and Huawei Technologies Co Ltd. These facilities will be funded by CDB and other Chinese banks/financial institutions, and their approval and draw down is expected soon.
On Tuesday, RCom ended 0.27% up at Rs132.15 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.11% up at 19,092.05 points.
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