RCom raises $255 mn to partly refinance 3G spectrum fee

Telecom service provider Reliance Communications (RCom) has raised $255 million (about Rs 1,155 crore) through external commercial borrowing (ECB) from consortium of banks to partly refinance the amount paid for 3G spectrum in the auction last year.

The loan is funded by a consortium of banks led by Australian and New Zealand Banking Group, BNP Paribas, Credit Agricole Corporate and Investment Bank, DBS Bank Ltd and Intesa Sanpaolo Spa, RCom said in a statement today.

The company, which bagged 3G spectrum in 13 circles, including Delhi, Mumbai and Kolkata, had paid Rs 8,585.04 crore to the government. RCom will benefit from extension of maturity and substantial savings in interest, the statement said.

Lats December, RCom had signed an agreement with China Development Bank Corporation for a loan of $1.33 billion (about Rs 6,000 crore) to refinance third generation, or 3G spectrum fee and for purchase of telecom equipment.

The agreement also covered financing of up to $600 million towards equipment and services to be procured from Chinese vendors Huawei Technologies and ZTE Corporation, the company said.

The company has already launched its 3G mobile services starting with Delhi, Mumbai and Kolkata. On December 21, the government had asked leading operators to halt the launch of their 3G services amid issues relating to security and interception facilities. Shares of RCom were trading at Rs 131.30, down 0.38 per cent in the late afternoon trade on BSE.