Reliance draws second tranche of loan

May 12th, 2011 - 2:52 pm ICT by IANS  

Mumbai, May 12 (IANS) Leading mobile service provider Reliance Communications, part of the Anil Dhirubhai Ambani Group (ADAG), Thursday said it had drawn the second tranche out of a $1.93 loan from China Development Bank.

“Reliance Communications has drawn second tranche of Rs.1,780 crore ($400 million) towards re-financing of 3G spectrum fees out of Rs.8,700 crore ($1.93 billion) facility signed with the Chinese Development Bank (CDB),” the company said in a regulatory statement.

The company drew the first tranche of Rs.3,000 crore ($665 million) on March 17.

Reliance Communications had last year paid Rs.8,585 crore towards spectrum fee for offering 3G services in 13 telecom circles in India.

“With this, Reliance Communications has already drawn Rs.4,780 crore ($1.06 billion) towards re-financing of 3G spectrum fees and the last tranche is expected to be drawn very shortly,” it added.

Of the total loan of $1.93 billion, Reliance Communications would use $1.33 billion towards re-financing the short term debt and the rest $600 million for equipment imports from Chinese vendors.

The re-financing will result in substantial savings in its interest cost apart from extending the company’s debt maturity profile, the company said.

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