During the visit of the Chinese Prime Minister to India, Reliance Communications Limited today signed a Memorandum Understanding (MoU) with China Development Bank Corporation for syndicated financing of US$ 1.93 Billion.
The proposed facility has 10 year maturity, and will be funded by a Syndicate including CDB and other Chinese Banks / Financial Institutions. RCom will benefit extension of maturity, and substantial savings in interest costs.
The facility is subject necessary approvals, etc.
The MoU covers:
(a) the first and largest Syndicated Loan of US$ 1.33 billion for refinancing Spectrum Fees; and
(b) financing of up to US$ 600 million towards 85% of equipment and services be procured from Huawei Technologies Co. Ltd (Huawei) and Corporation (ZTE). This facility is over and above the existing US$ 750 million facility, already substantially utilized by RCOM for procurement of equipment and services from Huawei and ZTE.