Anil Ambani group firm Reliance Communications on Friday said it has drawn the third and final tranche of Rs 1,200 crore (USD 266 million) from the Rs 8,700 crore (USD 1.93 billion) loan facility it secured from China Development Bank.
"Reliance Communications has drawn down third and final tranche of Rs 1,200 crore (USD 266 million) toward refinancing of 3G spectrum fees out of the Rs 8,700 crore (USD 1.93 billion) facility signed with China Development Bank (CDB) on March 9, 2011," RCom said in a filing to the Bombay Stock Exchange (BSE).
The facility includes Rs 6,000 crore (USD 1.33 billion) for refinancing RCom's 3G spectrum fee payments and Rs 2,700 crore (USD 600 million) for equipment imports from Chinese vendors.
"The drawn down amount will be used to refinance RCom's short-term rupee borrowings, resulting in substantial savings in its interest cost, apart from extending RCom's debt maturity profile," it said.
The loan facility, which is fully underwritten by CDB, is being funded by a syndicate of Chinese banks and financial institutions, including CDB.
This represents the first and largest ever syndicated loan for refinancing spectrum fees by any telecom company, it added.
Shares of the company were trading at Rs 82.05, up 1.99 per cent from the previous close on the BSE.