IDFC says it lent Rs 500-cr to TTSL for expansion

Infrastructure finance company IDFC today said it has lent Rs 500-crore to Tata Teleservices (TTSL) as a long-term debt for carrying out its expansion plans.

In March 2011, IDFC "assisted the company (TTSL) by lending Rs 500-crore by way of a 6-year bullet repayment loan with a put/call option at the end of every three-years", a statement from IDFC issued here said.

TTSL, which has the Tata Group and NTT DoCoMo as its major shareholders, proposes to raise both debt and equity to finance its capex at a time when it is carrying out fast-paced expansion programme and also incurring cash losses during the initial 3-4-year period, the release said.

The company, which operates in 20 telecom circles across the country, also intends to generate cash by part-selling its investment in mobile towers operator Viom Networks before the latter's initial public offer (IPO) valued at over $3.5-billion where TTSL owns over 50% stake.