RCom gets Rs 3,000cr as first tranche from CDB

Anil Ambani group firm Reliance Communications today said it has drawn the first tranche of Rs 3,000 crore (USD 665 million) from China Development Bank.

"RCom has drawn down first tranche of Rs 3,000 crore out of the Rs 8,700 crore facility signed with China Development Bank (CDB) on March 9, 2011," RCom said in a statement. The facility includes Rs 6,000 crore (USD 1.33 billion) for refinancing 3G spectrum fee payment by RCom and Rs 2,700 crore (USD 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 RCom's debt maturity profile," 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.