STel, a JV between entrepreneur C. Sivasankaran-promoted Siva Group and Bahrain Telecommunications (Batelco), has achieved financial closure to fund its network rollout project.

STel, a JV between entrepreneur C. Sivasankaran-promoted Siva Group and Bahrain Telecommunications (Batelco), has achieved financial closure to fund its network rollout project. A consortium of eight banks, led by IDBI, has extended a Rs 9.53 billion line of credit valid for nine years at an interest rate of 12.75 per cent. The other banks are SBI, Canara Bank, Punjab National Bank, Central Bank of India, Allahabad Bank and Bank of Baroda. Equity capital of Rs 12.53 billion has been brought in by the two promoters. While the financial requirement for its 2G mobile telephony service project is Rs 20 billion, the balance Rs 2.06 billion is being kept aside as buffer for any future plans such as internet or related services.