Reliance Communications (RCom) had drawn the second tranche of Rs.1,780 crore ($400 million) towards refinancing of 3G spectrum fees out of the Rs.8,700 crore ($1.93 billion) facility signed with the China Development Bank (CDB) on March 9.
The facility includes Rs.6,000 crore ($1.33 billion) for refinancing 3G spectrum fee payment by RCom and Rs.2,700 crore ($600 million) for equipment imports from Chinese vendors.
The drawn down amount will be used to refinance RCom's short-term rupee borrowings resulting in substantial savings in its interest cost apart from extending its debt maturity profile.
First tranche
The first tranche of Rs.3,000 crore ($ 665 million) was drawn down on March 17, 2011.
With this drawl, RCom has already drawn Rs.4,780 crore ($1.06 billion) towards refinancing of 3G spectrum fees and the last tranche is expected to be drawn very shortly.
The loan facility is fully underwritten by CDB.
