Bharti Mobitel, the basic telecom arm of Bharti Televentures, has raised a term loan of Rs 125 crore from Rabo India Finance.

An agreement with Rabo India was signed on October 17. Currently, the interest on the loan is 11.75 per cent and it is expected to vary. The rate will be determined on the basis of certain financial milestones to be achieved by Bharti Mobitel and the rate used by Rabo India.

The term loan is for up to 78 months and the principal repayment will be made in 10 semi-annual equal instalments which will commence on April 22, 2003.

The loan has been secured by exclusive first mortgage over all immovable and movable fixed assets of Bharti Mobitel including its telecommunication network assets, exclusive first hypothecation charge over all cash, cashflows and receivables.

Bharti's basic telephony operations are in the existing Madhya Pradesh circle and recently saw the entry of new circles such as Delhi, Haryana, Karnataka and Tamil Nadu. The group has already differentiated its non-wireless businesses such as fixed line, broadband and long distance services under the business group called The Infotel Leaders.

Infotel Leaders are grouped into two main regions each headed by an executive director. The northern region would comprise Bharti's Delhi, Haryana and Madhya Pradesh operations, while the southern region would comprise Karnataka and Tamil Nadu operations.