Financial Daily from THE HINDU group of publications
Sunday, Dec 26, 2004
Financial Daily from THE HINDU group of publications Sunday, Dec 26, 2004 |
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Telecommunications Corporate - Overseas Borrowings Reliance Infocomm raises $750 m in loan deal Our Bureau
Mumbai , Dec. 25 RELIANCE Infocomm Ltd said on Saturday that it had raised $750 million (about Rs 3,300 crore) by way of loans from Export Development Canada (EDC) and a US Exim Bank guaranteed line of credit, to finance its telecom project. This marked the closure of the $2.2 billion (Rs 10,000) debt-raising programme of Reliance Infocomm, part of the Reliance group. The financing, consisting of $500 million US Exim Bank guaranteed loan and $250 million EDC loan, has a total repayment tenor of 10 years after a one-and-a-half-year build-out period of the telecom network. The $500 million loan is said to be the largest financing provided by the US Exim Bank in India. The credit facilities were arranged by Citigroup India, the company said in a pres release. Govco, a Citigroup SPV, will be lending to the company. The debt will finance the expansion of Reliance Infocomm's mobile network to over 5,000 towns and cities as well as the roll out of its broadband services, the company said. Reliance Infocomm currently has a customer base of nearly nine million wireless users in one of the world's fastest-growing mobile markets. A Reliance Infocomm spokesperson said the long-term loan, at 1-1.5 per cent above Libor, was raised entirely on the basis of the balance sheet strength of Reliance Infocomm and was in no way backed by Reliance Industries Ltd. According to Mr Jagannatha Kumar, head, project finance, Reliance Infocomm, the deal provides the company an attractive long-term funding. "The deal is an endorsement of our business plan and a recognition by international agencies of the company's achievements," he said. Reliance Industries had recently raised 116.2 million euro (Rs 681 crore) for refinancing import of equipments for expansion of its polyester plants at Hazira and Patalganga.
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