Reliance Communication to get $1.93 bn from China Bank

December 15th, 2010 - 9:20 pm ICT by IANS  

Mumbai, Dec 15 (IANS) Reliance Communication, part of the Anil Ambani Group, Wednesday signed an agreement with China Development Bank (CDB) for providing the India telecom major loans worth $1.93 billion. The agreement has a maturity period of 10 years and will be funded by a syndicate including CDB and other Chinese financial institutions.

About $1.33 billion of the loan will be used by the operator to restructure existing loans taken for buying 3G spectrum while the rest will be used for procuring equipment worth $600 million from Huawei Technology and ZTE Corp.

“This facility is over and above the existing $750 million facility, already substantially utilised by RCom for procurement of equipment and services from Huawei and ZTE,” the company said in a statement.

“RCom will benefit from extension of maturity and substantial savings in interest costs,” it added.

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