RCom get third tranche of loan from CDB

MUMBAI, INDIA: Reliance Communications, an Anil Ambani group company, said on Friday that it has drawn the third and the final tranche of Rs 1,200 crore (US$ 266 million) out of the Rs 8,700 crore (US$ 1.93 billion) loan facility it signed with China Development Bank (CDB) on March 9, 2011.

RCom had drawn the first tranche of Rs.3,000 crore on March 17, while the second tranche of Rs 1780 crore was drawn on May 12.

While RCom is using Rs 6,000 crore (US$ 1.33 billion) of the loan for refinancing the 3G spectrum fee payments, by clearing the short-term borrows, it would use Rs 2,700 crore (US$ 600 million) for the equipment imports from Chinese vendors.

RCom said the loan, fully underwritten by CDB, is being funded by a syndicate of Chinese banks/financial institutions including CDB. By repaying the short-term loans, RCom expects to make a substantial savings in interest cost apart from extending RCom's debt maturity profile, it said in a regulatory filing.