Financial Daily from THE HINDU group of publications
Thursday, Jan 13, 2005
Financial Daily from THE HINDU group of publications Thursday, Jan 13, 2005 |
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Info-Tech
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Overseas Borrowings Bharti ties up $354-m foreign loan funding Our Bureau
New Delhi , Jan. 12 BHARTI Tele-Ventures Ltd on Wednesday said it had tied up a $354-million loan for paying equipment vendors Ericsson and Nokia for supply of mobile network hardware. Bharti has tied up with Swedish export credit agency EKN for $254 million and with FinnFund for the remaining $100-million long-term foreign loan. ABN Amro was the lead arranger for these facilities. The funds would be deployed in further expanding the networks for Bharti's mobile services and for new circle rollouts. The funding has been arranged at an approximate spread of 35 basis points over LIBOR . The total cost of funding is approximately 4.4 per cent, without currency hedge. This long-term funding has an average tenure of over five years and door-to-door tenure is approximately 10 years. The facility from EKN comes with a door-to-door maturity of 10 years. The money would be used for making payment to Swedish telecom equipment major Ericsson. The $100-million loan facility, from FinnFund, is guaranteed for payment by Finnvera. The facility would shall be used for payment to Finnish equipment manufacturer Nokia for supply of capital equipment.
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