South African telecommunications company, Neotel, in which Tata Communications holds a 56 per cent stake, is planning to raise $1 billion mostly through debt, for its expansion plans.

South African telecommunications company, Neotel, in which Tata Communications holds a 56 per cent stake, is planning to raise $1 billion mostly through debt, for its expansion plans. The company will opt for an equity-linked mode for the remaining part of the loan that cannot be raised through debt. According to sources, the company, which is the second national operator for fixed line services in South Africa, has already initiated discussions with bankers, including those from India.