Infotel Broadband Services raises $500 million in loans
31 Jul 2010
Infotel Broadband Services, owned by Reliance Industries, India's largest firm by market value, has raised $500 million in loans from a Royal Bank of Scotland-led consortium, according to a newspaper report which quoted three sources.
The Economic Times today reported that, the fund raising had been completed by June-end, and the cheque had already been presented to Reliance Industries, quoting an unidentified banker, who was one of the three sources.
The funds raised at an interest rate of 250-300 basis points over the London interbank offered rate (Libor) have a tenure of six years, according to the newspaper.
In June, Infotel Broadband emerged as the sole winner of a nationwide license for broadband wireless spectrum and was acquired by Reliance Industries for about $1 billion (See: RIL acquires 95-per cent stake in Infotel Broadband).
The funds would go towards rolling out start services.
The company is expected to deploy data technology in its roll out. This would take around eight months after the company received its spectrum.
Khaitan & Co acted as the legal consultants for Reliance Industries in the deal which was handled by one of its partners, Shishir Mehta.