Info-tech

RCom raises $255 m to refinance 3G spectrum fee

Our Bureau Mumbai | Updated on January 21, 2011 Published on January 21, 2011

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Mr Anil Ambani-controlled Reliance Communications has raised $255 million (about Rs 1,155 crore) by way of external commercial borrowing to partly refinance payments made for acquiring 3G, or third generation, spectrum.

This loan is funded by a consortium of banks led by Australian and New Zealand Banking Group, BNP Paribas, Credit Agricole Corporate and Investment Bank, DBS Bank Ltd and Intesa Sanpaolo, RCom said in a press statement.

RCom, which has won spectrum for 13 circles, will benefit from extension of maturity, and substantial savings in interest costs from this facility, the statement said.

It may be recalled that RCom had paid Rs 8,585.04 crore to the Government for securing 3G spectrum in the circles of Punjab, Rajasthan, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar, North-East, Jammu & Kashmir, Orissa and Assam.

Last month, RCom signed a memorandum of understanding with China Development Bank to refinance the $1.33 billion paid for 3G spectrum to the Department of Telecommunications. The MoU also covers financing of up to $600 million towards equipment and services to be procured from Chinese vendors such as ZTE Corporation and Huawei Technologies. The RCom scrip was up 0.27 per cent to close at Rs 132.15 on the BSE on Tuesday.

Published on January 21, 2011
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