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Reliance Info raises $300-million loan
By siliconindia staff writer
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Wednesday, 13 October 2004, 19:30 IST
NEW DELHI: In one of the largest deals by an Indian telecom company, Reliance Infocomm has raised $300 million from overseas markets through syndicated loans to part finance its $5.5-billion telecom project.
The seven-year loan carrying an interest rate of 1.7 per cent over the London Interbank Offered Rate (LIBOR), considered to be one of the benchmark rates, is structured in such a way that it comes down to 1.2 per cent over LIBOR during the tenure, Jagannath Kumar, head, project finance, Reliance Infocomm, told a news agency.
The $300-million syndicated loan has been arranged by a consortium of eight banks ABN Amro NV, Australia and New Zealand Banking Group, Bank of Baroda, BNP Paribas, DBS Bank, ICICI Bank, Mashreqbank and Rabobank.
The deal was signed by Reliance Infocomm (RIC) and the consortium members recently in Mumbai.
The company, which has a subscriber base of 85 lakh, has already raised domestic debts of Rs 5,000 crore, and some equity towards capital expenditure for the ongoing mega $5.5-billion Infocomm project in Mumbai.
"The transaction, the first ever cross-border borrowing by RIC, and the largest debt raising in the international syndication market by an Indian telecom company, has received an overwhelming response," Kumar said.
The deal is a sign of the faith reposed by the global banking community in the operating and financial strengths of RIC, in its second year of operation, Kumar said.