Unitech Wireless gets Rs 5k-cr loan from SBI

Unitech Wireless, in which Norway-based Telenor Group holds a 49 per cent stake, has secured a Rs 5,000-crore loan from State Bank of India (SBI). The company will use the loan to finance the rollout of its operations in the country. The loan, syndicated by SBI Capital Markets, includes bank guarantees and a letter of credit, Unitech Wireless said in a release issued here today.

“Unitech Wireless is in the midst of taking up an aggressive ramp-up to launch its telecom services in India by the end of this year. The company has already placed significant orders on partners and vendors for services and equipment in order to meet the ambitious targets we have set for launch. We are delighted to have one of India’s premier financial institutions, the SBI, join us, along with our existing bankers, as a partner in this exciting venture,” Unitech Wireless Chief Corporate Affairs Officer Rajiv Bawa said.

The company had earlier secured a loan from a consortium of banks comprising Punjab National Bank, Canara Bank, Bank of India, Oriental Bank of Commerce, Central Bank of India and Vijaya bank.

Unitech Wireless has already signed outsourcing agreements with infrastructure firms like Wireless-TT Info Service, Quippo Telecom Infrastructure, Alcatel-Lucent, Wipro, Huawei Technologies India, Ericsson and Telcordia.

Telenor Group, which had already invested Rs 2,620 crore, is planning to make an additional payment of Rs 6,120 crore to increase its stake in the company to 67.25 per cent.

Unitech holds a pan-India license and has also received spectrum to roll out services across 21 (of 22) circles. The company intends to roll out its services in select circles by the end of 2009.