Reliance Communications (RCOM) has drawn the third and final tranche of Rs 12 billion from the Rs 87 billion loan facility it secured from China Development Bank.
In a filing to the Bombay Stock Exchange, RCOM said, ?Reliance Communications has drawn down the third and final tranche of Rs 12 billion toward refinancing 3G spectrum fees out of the Rs 87 billion facility signed with China Development Bank on March 9, 2011.?
The facility includes Rs 60 billion for refinancing RCOM?s 3G spectrum fee payments and Rs 27 billion 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 filing said.
The loan facility, which is fully underwritten by CDB, is being funded by a syndicate of Chinese banks and financial institutions, including CDB, it added.
