Reliance Communications draws second tranche of Rs. 1,780 crore (US$ 400 Million) from China Development Bank underwritten facility of Rs. 8,700 crore (US$ 1.93 Billion)

* Total draw down of Rs. 4,780 crore (US$ 1.06 Billion) so far.

* Drawn down amount to be used to refinance higher cost Short Term Rupee Debt.

* Loan to refinance 3G spectrum Auction.

* Annual projected interest cost savings of over Rs. 500 crore per year.

* RCOM to benefit from extended Loan Maturity of 10 years and substantial interest cost savings.

Mumbai; May 12, 2011: Reliance Communications Limited (RCOM) has today drawn down second tranche of Rs.1,780 crore (US$ 400 Million) towards refinancing of 3G spectrum fees out of the Rs. 8,700 crore (US$ 1.93 Billion) facility signed with China Development Bank (CDB) on March 9, 2011.

The facility includes Rs. 6,000 crore (US$ 1.33 Billion) for refinancing 3G spectrum fee payment by RCOM and Rs. 2,700 crore (US$ 600 Million) for equipment imports from Chinese Vendors.

The first tranche of Rs. 3,000 crore (US$ 665 Million) was drawn down on 17th March 2011. With this drawl, RCOM has already drawn Rs. 4,780 crore (US$ 1.06 Billion) towards refinancing of 3G spectrum fees and the last tranche is expected to be drawn very shortly.

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.

The loan facility which is fully underwritten by CDB, and is being funded by a syndicate of Chinese Banks/ Financial Institutions including CDB.

This represents the first and largest ever Syndicated Loan for refinancing Spectrum Fees by any telecom company.

Reliance Communications Limited founded by the late Shri Dhirubhai H Ambani (1932- 2002) is the flagship company of the Reliance Group. The Reliance Group currently has a net worth in excess of Rs. 64,000 crore (US$ 13.6 billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs. 8,400 crore (US$ 1.8 billion).

Above Business Release Sourced by Citiesbazar through
VISHAL MEDIA (P.R.Agency), Mobile 098266-23100, Email- pr@vishalmedia.com