Wednesday 9 March 2011

Reliance Communications inks $1.9 bn loan deal with Chinese bank

Reliance Communications Wednesday said it has concluded all necessary formalities with the China Development Bank for a $1.93-billion loan facility to Finance  its third generation telecom services business.


The loan facility is fully underwritten by the Chinese bank and represents the first and largest ever syndicated loan not only in India's telecom sector but also in terms of a loan to an Indian entity from a Chinese financial instituation.


The loan facility includes an agreement for $600 million for financing imports, as also for domestic expenditure on telecom equipment sourced from the Chinese vendors namely, Huawei and ZTE.


"Reliance Communications has already received Reserve Bank of India's approval for the facilities and the draw down is expected to commence shortly," .

The financing has a maturity period of 10 years.

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