ICICI was the lead manager for the entire rupee debt. Escotel Mobile Communications Ltd. company is a joint venture between Escorts Ltd. and First Pacific Company Ltd. of Hong Kong.

The company's new plan for the offshore debt also provides a ballooning amortization for the repayment. The company has hedged 70 per cent of the offshore facility to minimize the risk.

Escotel's executive director and chief executive officer, Manoj Kohli explained that the funds from the offshore facility, would be utilised for the repayment of all short term loans and the incremental capital expenditure requirements.

He added that it would help the company to enhance its network, service its subscriber base and provide an impetus to the company's plans for introducing services like IN and GPRS.

Escotel's chief financial officer, Anil Virmani said "The onshore lenders led by ICICI and the offshore lenders, have reiterated their commitment to Escotel and the cellular industry.

The refinancing and financial restructuring will add considerably to the bottomline of the company, by way of reduction in interest costs on the onshore funding and containment of the exchange risks by a judicious hedging policy.

Escotel was the first cellular company in the country to achieve financial closure in August 1997. Both the promoters have already brought in their respective share of equity into the venture.