Reliance Communications ties up $1.93 billion loan with Chinese banks
15 Dec 2010
Reliance Communications Ltd will raise around $1.93 billion (Rs9,000 crore) in long-term financing with Chinese banks, to refinance its existing loan and for procuring equipment from Chinese companies.
Reliance Communications has signed a memorandum of understanding (MoU) with China Development Bank Corporation for 10-year loan of $1.93 billion (Rs9,000 crore), the company said in a filing with the Bombay Stock Exchange (BSE).
The loan has a 10-year maturity and will be funded by a syndicate, including CDB and other Chinese banks and financial institutions.
RCom will benefit from extension of maturity and substantial savings in interest costs, the company said in a filing with the Bombay Stock Exchange (BSE).
The facility is subject to necessary approvals, the company said.
The agreement covers the largest syndicated loan of $1.33 billion for refinancing 3G spectrum fees and a $800 million loan for equipment and services to be procured from Huawei Technologies Co Ltd and ZTE Corporation.
RCom is already availing a $750 million loan for procurement of equipment from the two Chinese companies.