Reliance Communications up 5% on repayment of 2 ECB loans

Moneycontrol Bureau

Reliance Communications shares soared nearly 5 percent Monday after the telecom operator announced it has completed full repayment of two syndicated ECB (external commercial borrowing) loans worth USD 1 billion during the quarter ended June 30, 2013. The company had availed these loans in 2007 from a group of international banks. In addition to it, the telecom operator also repaid USD 207 million (Rs 1200 crore) towards other foreign currency loans during June quarter. Meanwhile, Deutsche Bank recommended holding the stock. The foreign brokerage house raised target price for the stock to Rs 100 due to the potential impact of recent deals for sharing its towers and fibre infrastructure with Reliance Jio owned by Mukesh Ambani. At 10:55 hours IST, the stock was quoting at Rs 123.75, up 4.78 percent on the Bombay Stock Exchange. It rallied 10 percent on past one month and 124 percent in three months. Also Read - RComm, Reliance Jio to ink intra-city fiber pact soon