Telenor India arm looking to raise $2.1 bn

NEW DELHI, INDIA:  Indian mobile firm Unitech Wireless, in which Norway's Telenor is taking about 67 percent stake, is preparing to raise up to 100 billion rupees ($2.1 billion) via debt and other options to fund its network expansion, the Economic Times reported on Wednesday.

Chief Corporate Officer Rajiv Bawa told the newspaper he expected the company to obtain project financing of $1.5 to $2 billion by next year.

"Work on raising this capital has just started. We will approach this consortium of six public sector banks as well as several other banks and institutions for raising this additional debt," the paper quoted him as saying.

Bawa also said the company might have to look at other options, without specifying what they were, it said.

Unitech Wireless is one of the new telecoms licensees in India and is yet to start operations. Realty Unitech Ltd, which had founded the firm, is selling a 67.25 percent stake to Telenor in phases.

A spokesman for Unitech said he would not comment on the fund raising plans.

Unitech Managing Director Sanjay Chandra has said the mobile operator will start services in the December quarter.