Indian mobile network operator Reliance Communications has secured US$1.18bn worth of loans to refinance its outstanding foreign currency convertible bonds (FCCBs) due for redemption on 1 March 2012.
The banks providing the funding include Industrial…
Indian mobile network operator Reliance Communications has secured US$1.18bn worth of loans to refinance its outstanding foreign currency convertible bonds (FCCBs) due for redemption on 1 March 2012.
The banks providing the funding include Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB), and Export Import Bank of China (EXIM).
This refinancing is the largest in the history of FCCBs by any Indian company, RCom said in a statement.
It added that it will benefit from extended loan maturity of 7 years and interest cost of approximately 5%.
In December 2010, the operator had already raised a US$1.93bn syndicated loan with CDB to refinance part of its debt and buy Chinese telecoms equipment from Huawei and ZTE.
RCom has been struggling with US$7bn worth of liabilities for several months now but has so far failed to sell its tower unit Infratel, which would allow it to cut down its debt load.
However, RCom is reportedly still in discussions with private equity firms Blackstone and Carlyle regarding a potential Infratel sale.
