Reliance Communications (RCOM) has drawn the first tranche of Rs 30 billion from China Development Bank, say news reports.
In a statement, RCOM said, “The company has drawn down the first tranche of Rs 30 billion 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 payment by RCOM 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,” it said.
The loan facility, which is fully underwritten by CDB, is being funded by a syndicate of Chinese banks or financial institutions including CDB.
