Operators seek debt to pay off auction excess

Indian mobile operators look set to provide some short-term financing opportunities to lenders as they have to pay for their recently won 3G spectrum by May 31.
The government commanded a total of US$14.4bn for the spectrum, much of which was acquired by…

Indian mobile operators look set to provide some short-term financing opportunities to lenders as they have to pay for their recently won 3G spectrum by May 31.

The government commanded a total of US$14.4bn for the spectrum, much of which was acquired by Vodafone, Bharti Airtel and Reliance Communciations. Other operators also picked up spectrum although no-one was able to piece together a pan-India 3G licence.

Reliance is reportedly in the market to raise around US$1bn via commercial notes to finance its expenditure. According to Dow Jones, the three-month paper would yield 6%.

Tata Teleservices is looking to raise around US$200m, also via commercial notes, that pay 7.25%, according to the same source.