Reliance Communications Limited (RCOM) has drawn down third and final tranche of Rs.1,200 crore (US$266 million) towards refinancing of 3G spectrum fees out of the Rs.8,700 crore (US$1.93 billion) facility signed with China Development Bank (CDB) on March 9, 2011. The facility includes Rs.6,000 crore (US$1.33 billion) for refinancing 3G spectrum fee payment by RCOM and Rs.2,700 crore (US$ 600 million) for equipment imports from Chinese vendors.
With this, RCOM has drawn Rs.6,000 crore (US$1.33 billion) towards refinancing of 3G spectrum fees. 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.
The loan facility is fully underwritten by CDB, and is being funded by a syndicate of Chinese banks/ financial institutions, including CDB. This represents the first and largest-ever Syndicated Loan for refinancing Spectrum Fees by any telecom company.
