RCom completes repayment of $500 million ECB loan

Besides, last year it paid bilateral ECB loan of more than $310 million (Rs 1,900 crore)

Reliance Communications (RCom), on Friday, said it has completed repayment of a syndicated external commercial borrowing (ECB) loan of $500 million (about Rs 3,100 crore) on scheduled, the company said in a statement. The due date for the repayment was Friday.

In July last year, Anil Ambani-led RCom had completed full repayment of two syndicated ECB loan of $500 million each, amounting to $1 billion (about Rs 6,200 crore), during the quarter ended June 30, 2013.

Besides, it had paid bilateral ECB loan of more than $310 million (Rs 1,900 crore). It availed the two loans in 2007 from a group of international banks, and has repayments have been from RCom’s rupee resources.

With the repayments of the ECB loans, RCom has become fully liquidated the borrowings from 23 foreign banks and financial institutions, RCom said in a statement.

In October 2007, the Government had given approval to RCom for dual technology usage allowing them to offer GSM services along with CDMA. So, part of the borrowing could have been used towards payment of spectrum fee.

In July last year, the company had also said that it had reduced its foreign currency debt and the interest outgo on forex debt is fully covered by US dollar denominated earnings from the Reliance Globalcom business.