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RCom gets second tranche of loan from China Bank

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Reliance Communications has drawn Rs 1,780 crore in the second tranche of a loan from China Development Bank. This is part of the Rs 8,700 crore syndicated loan arrangement with the Chinese bank mainly to refinance the short-term debt the Anil Ambani group company took for acquiring third generation or 3G spectrum.

The drawn down amount will be used to refinance short-term rupee borrowings, resulting in substantial savings in interest cost apart from extending its debt maturity profile, Reliance Communications said.

The first tranche of Rs 3,000 crore was drawn on March 17, and the last tranche is expected to be drawn shortly, it said.

Reliance Communications last year paid Rs 8,585 crore for bandwidth to offer 3G services in 13 telecom circles in India.

May 13, 2011 · Filed Under Reliance Comm 
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