Indian towerco Viom Networks will raise Rs15bn (US$330m) in debt finance over the next ten years, according to local media reports.
Citing a source familiar with the proceedings, the Economic Times reported yesterday that Viom Networks would raise the…
Indian towerco Viom Networks will raise Rs15bn (US$330m) in debt finance over the next ten years, according to local media reports.
Citing a source familiar with the proceedings, the Economic Times reported yesterday that Viom Networks would raise the money through a mix of domestic and overseas borrowings. It did not go into specifics on whether the debt would come in the form of bonds or loans.
According to the report, the consortium arranging the borrowing is led by Deutsche Bank. It also includes the German development agency DEG, and two Indian banks: Bank of India and Bank of Baroda.
The interest rate on the external commercial borrowing and rupee finance would be 350bp over Libor.
The newspaper reported another anonymous source saying that Viom’s immediate funding needs for planned tower acquisitions is just under Rs20bn (US$440m). 80% of this would reportedly come from borrowing, with the rest to be made up by the company’s shareholders.
Viom Networks is a JV between Quippo Telecom Infrastructure and the infrastructure arm of Tata Teleservices. It also gets investment from several private equity sources: Macquarie SBI Infrastructure Fund (MSIF), IDFC Private Equity, GIC-Singapore and Oman Investment Fund.
Viom has reportedly put in a bid to acquire the towers of Vodafone Essar. This JV between the British telco Vodafone and the Indian conglomerate the Essar Group had put 7,000 towers up for sale.
But the sale has reportedly been delayed due to valuation issues.
In October 2010, it was reportedly looking to raise US$1.5bn in an IPO, which would be arranged by five banks: Citigroup, Credit Suisse, Goldman Sachs, IDFC Capital and Morgan Stanley.
Viom Networks did not reply to questions before the press deadline.