RCom gets Rs 1,780 cr as second tranche from CDB

The facility includes Rs 6,000 crore USD 1.33 billion for refinancing 3G spectrum fee payments by RCOM and Rs 2,700 crore USD 600 million for equipment imports from Chinese vendors.

8220;The drawn down amount will be used to refinance Rcom8217;s short-term rupee borrowings,resulting in substantial savings in its interest cost,apart from extending RCom8217;s debt maturity profile,8221; it said.

The loan facility,which is fully underwritten by CDB,is being funded by a syndicate of Chinese banks or financial institutions,including CDB.

This represents the first and largest ever syndicated loan for refinancing spectrum fees by any telecom company,it added.

The first tranche of Rs 3,000 crore USD 665 million was drawn down on March 17,2011. With this drawal,RCom has already drawn Rs 4,780 crore USD 1.06 billion toward refinancing of 3G spectrum fees and the last tranche is expected to be drawn very shortly.

Shares of the company were trading at Rs 92.70,up 1.26 per cent from the previous close on the BSE.