Reliance Communications (RCOM) is in talks with China Development Bank (CDB) for a loan to redeem a $925 million convertible bond maturing in March 2012.
The move comes after RCOM has failed to sell its tower unit, despite several efforts. The operator had expected around $3 billion from the deal. Further, the company has been in talks with US based buyout giants Carlyle Group and Blackstone Group for a deal, but nothing has materialised.
CDB is likely to approach other Chinese lenders about syndicating the loan. The terms of the loan are yet to be formulated. The loan is likely to be launched in/after February 2012.
CDB had arranged loans worth $1.93 billion for RCOM during March 2011. The proceeds were used to refinance payments made towards 3G spectrum fee and for buying equipment.
