RCom gets Rs 3,000 cr loan from Chinese bank

Reliance Communications has got a loan of $750 million from China Development Bank for a period of 10 years and at a rate of LIBOR plus 80 basis points. The Rcom spokesperson, when contacted, confirmed the development.

Reliance Communications has got a loan of $750 million (Rs 3,000 crore) from China Development Bank for a period of 10 years and at a rate of LIBOR plus 80 basis points. The Rcom spokesperson, when contacted, confirmed the development.

While, the telecom giant is seeking approval of the Central Bank, it is learnt that the proceeds of the loan would be invested in building the nationwide GSM footprint for Rcom and a large part of it would fund the company’s plan to buy GSM electronic equipment that are being supplied by Huawei. The loan from China Development Bank adds significant advantage to the company’s GSM foray as it carries a tenor three-four years longer and around 50 basis points lower than any other closest option. The telecom major plans to launch nationwide GSM services by end of this fiscal and has announced a capex investment of $1 billionn in active GSM infrastructure.

This article was first uploaded on May sixteen, twenty eight, at forty-two minutes past eleven in the night.