The repayments would deleverage RCom’s balance sheet.
Reliance Communications Ltd (RCom), on Monday, said it had completed full repayment of two syndicated external commercial borrowing (ECB) loan facilities of $500 million each, aggregating to $1 billion (about Rs.5,900 crore), during the quarter ended June 30, 2013.
These loans were availed itself of in the year 2007 from a group of international banks, the company said in a statement.
In addition, the company had made scheduled repayments of another $207 million (about Rs.1,200 crore) in respect of other foreign currency loans on the respective due dates during the said quarter.
These repayments had been from the company’s rupee resources. RCom said its foreign currency debt was steadily declining, and the interest outgo on such debt was fully covered by dollar-denominated earnings from the Reliance Globalcom business.
The repayments would deleverage the Rcom’s balance sheet, which was carrying a debt of $7 billion by the end of March.
Following the announcement, RCom shares surged to 30-month high of Rs.133.25, before closing with a gain of 12.19 per cent at Rs.132.50 on the Bombay Stock Exchange on Monday.