Reliance Communications (RCOM) has raised $255 million through external commercial borrowings for partly re-financing payments for acquiring 3G spectrum, according to news reports.
In a regulatory statement, the operator stated that it would benefit from extension of maturity and substantial savings in interest costs from the facility. The loan is funded by a consortium of banks, led by Australian and New Zealand Banking Group Limited, BNP Paribas, Credit Agricole Corporate and Investment Bank, DBS Bank Limited and Intesa Sanpaolo Spa .
Reliance Communications, which won the bids for 13 telecom circles including Delhi, Mumbai, Kolkata and Punjab, had to pay Rs 85.85 billion for 3G spectrum.
In 2010, RCOM had also signed an agreement with the China Development Bank Corporation for a loan of $1.33 billion for re-financing the loans taken to pay the fee for 3G spectrum and for financing up to $600 million towards procuring 85 per cent of telecom equipment and services from Huawei Technologies and ZTE Corporation.
