Reliance Communications raises $255 million overseas to refinance 3G spectrum fee
18 Jan 2011
Anil Ambani Anil Ambani-led Reliance Communications has raised $255 million (around Rs1,155 crore) by way of external commercial borrowing, to part refinance rupee debt utilised for payment of 3G spectrum fee.
The loan has been funded by a consortium of banks led by Australian and New Zealand Banking Group Limited, BNP Paribas, Credit Agricole Corporate and Investment Bank, DBS Bank Limited and Intesa Sanpaola Spa.
Reliance Communications said the new arrangement will reduce its interest burden and that the company will benefit from extension of loan maturity.
The company had, in December, signed a memorandum of understanding (MoU) with China Development Bank (CDB) during the visit of Chinese premier to India, to refinance $1.33 billion paid to the department of telecom (DoT) for 3G spectrum.
The MoU also covers financing of around $600 million towards payment for equipment and services to be procured from Chinese vendors like ZTE Corporation and Huawei Technologies.
The funding will be done by CDB and other Chinese banks and financial institutions, the company said.