India’s Reliance Communications (RCOM) has announced that it has raised USD255 million via external commercial borrowing which it will use to partly re-finance the payments for the its 3G spectrum, India’s Economic Times reports. ‘RCOM will benefit from extension of maturity and substantial savings in interest costs from the facility,’ the company noted in a statement. It is understood that the new loan has been funded by a consortium of banks, led by Australian and New Zealand Banking Group, BNP Paribas, Credit Agricole Corporate and Investment Bank, DBS Bank Ltd and Intesa Sanpaolo Spa.
As previously reported by CommsUpdate, in May 2010 RCOM acquired 2×5MHz paired spectrum in 13 circles, paying INR85.85 billion (USD1.86 billion) for its 3G concession. Subsequently, last month it became the second privately owned mobile network operator to launch commercial 3G services, introducing its third-generation services in four cities – Mumbai, Delhi, Calcutta and Chandigarh.