Comments
Reliance Communications has signed a final documentation with China Development Bank (CDB) for securing a Rs 6,000-crore loan.
The loan facility is fully underwritten by CDB, and will be funded by a syndicate of Chinese financial institutions, including CDB.
This is being seen as the first and largest ever syndicated loan for refinancing spectrum fees. The company paid about Rs 8,585.04 crore to the government for securing 3G licences in 13 telecommunication circles.
RCom has also signed an additional agreement for Rs 2,700 crore ($600 million) with CDB, for financing imports/domestic expenditure of telecom equipment from Chinese vendors, namely Huawei and ZTE.
RCom had executed a memorandum of understanding with CDB during the India visit of the Chinese Prime Minister, Mr Wen Jiabao, in December 2010. The RCom scrip was up by 9.36 per cent to close at Rs 99.3 on the BSE.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.