Reliance Communications (RCOM) has drawn a second tranche of Rs 17.80 billion from the Rs 87 billion loan facility it secured from China Development Bank.
In a filing to the Bombay stock Exchange, the company stated, ?Reliance Communications has drawn down second tranche of Rs 17.80 billion toward refinancing of 3G spectrum fees out of the Rs 87 billion facility signed with China Development Bank (CDB) on March 9, 2011.?
The facility includes Rs 60 billion for refinancing 3G spectrum fee payments by RCOM and Rs 27 billion for equipment imports from Chinese vendors.
The statement added, ?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 the company?s debt maturity profile.
The loan facility, which is fully underwritten by CDB, is being funded by a syndicate of Chinese banks or financial institutions, including CDB.
The first tranche of Rs 30 billion was drawn down on March 17, 2011. With this, RCOM has already drawn Rs 47.80 billion toward refinancing of 3G spectrum fees and the last tranche is expected to be drawn very shortly.
