Canadian export credit agency, Export Development Canada (EDC) has given a $215 million loan to India’s third largest telecom operator, Idea Cellular. The loan is under a pre-existing $500 million uncommitted financing arrangement for the Aditya Birla Group (ABG). Under the arrangement, EDC provides financing support to the broader group companies under the ABG banner for transactions that are of strategic importance to both EDC and the Group, the agency said. Idea will utilise the loan to diversify its funding sources as well as enhance the maturity profile of its long-term debt in a cost-effective manner.
“Since 2014, EDC has been actively engaged with Idea to facilitate introductions to Canadian companies,” it added. Commenting on the development, EDC’s chief representative in India Nathan Nelson said Idea is one of the most sought-after buyers for leading-edge Canadian ICT companies as the areas of focus for EDC and Idea are a natural fit. Idea’s CFO Akshaya Moondra said that EDC has been a lender to the telecom operator in multiple consortium transactions since 2011 and the relationship is now being expanded with EDC as the sole lender for this new financing.