Chandigarh/Jammu, March 9 (Scoop News) – Reliance Communications Limited (RCOM) today signed final documentation with China Development Bank (CDB) for a Rs. 6000 crore (US$ 1.33 Billion) loan facility. (USD = 45.15 INR)
The loan facility is fully underwritten by CDB, and will be funded by a syndicate of ChineseBanks/Financial Institutions including CDB.
This represents the first and largest ever Syndicated Loan for refinancing Spectrum Fees.
RCOM has also signed an additional Agreement for Rs. 2700 crore (US$ 600 million) with CDB, forfinancing imports / domestic expenditure of telecom equipment from Chinese vendors (namely,Huawei and ZTE).
RCOM has already received RBI Approval for the facilities, and draw down is expected to commence shortly.
The aggregate financing of Rs. 8700 crore (US$ 1.93 billion) has a maturity period of 10 years,contributing to significant extension of RCOM’s debt maturity profile, apart from substantial savings in interest costs.
RCOM had earlier received an in principle approval from CDB for these facilities, and had executed a Memorandum of Understanding with CDB, during the visit of Hon’ble PrimeMinister of China, Wen Jiabao, to India in December 2010.