Anil Ambani group firm Reliance Communications has drawn down the third and final tranche of Rs 1,200 crore towards refinancing of 3G spectrum fees out of Rs 8,700 crore facility signed with China Development Bank (CDB) on March 09, 2011.
The facility includes Rs 6,000 crore for refinancing RCom’s 3G spectrum fee payments and Rs 2,700 crore for equipment imports from Chinese vendors. The drawn down amount will be used to refinance RCom’s short-term rupee borrowings, resulting in substantial savings in its interest cost, apart from extending RCom’s debt maturity profile.
The loan facility, which is fully underwritten by CDB, is being funded by a syndicate of Chinese banks and financial institutions, including CDB. This represents the first and largest ever syndicated loan for refinancing spectrum fees by any telecom company.
Reliance Communications as on March 17 drew down the first tranche of Rs 3,000 crore out of the Rs. 8,700 crore facility signed with China Development Bank (CDB) on March 09, 2011.
