Reliance Infocomm to raise $500 mn to repay debt

In its first major financial initiative after Anil Ambani took over the reins, Reliance Infocomm will raise $500 million from overseas markets, mainly to refinance high-cost debts.

The company is likely to enter the overseas market within next three-four weeks, banking industry sources said.

According to sources, the company had taken high-cost loans in the past while rolling out networks across the country. Reliance infocomm offers virtually all types of telecom services "" basic, mobile, STD, ISD and Internet.

Banking sources said leading banks, including HSBC, ICICI, Standard Charted and Bank of America, are in the fray to become lead arrangers for Reliance's syndicated loan.

This is the first major financial initiative after the younger of the Ambanis took over the charge of Reliance Infocomm, which, he earlier said, would go for public offering and listing at indian bourses by the end of current financial year.

The company has recently announced that it was the first service provider to achieve the mark of 15 million subscriber base of both CDMA and GSM-based mobile services. Company officials were not available for comments.