Tags: Reliance

Reliance raises USD 750 million for telecom division

For the company which might revolutionize broadband in India as they did with mobile phones (CDMA based), this would come as a relief. They have managed to raise around USD 750 millions by way of loans to finance their telecom projects. The money came from Export Development Canada (EDC) and a US Exim Bank guaranteed line of credit.

This also means that the program of Reliance to raise USD 2.2 billion through debt raising is now complete. These latest loans would have to be paid back in around 10 years after 1.5 years of build-out period. This is also considered to be one of the biggest loans ever given out by US Exim Bank for an Indian company.

Citigroup India facilitated the deal for Reliance Infocomm through their subsidiary Govco. They would be lending the money to the company. Reliance on their part would use the money to expand their mobile network in more areas in the country. In addition, they have plans to invest the money in their broadband venture, which plans to drive the country’s IT market in the coming months.

About Reliance Infocomm:

Reliance Infocomm is the outcome of the late visionary Dhirubhai Ambani’s (1932-2002) dream to herald a digital revolution in India by bringing affordable means of information and communication to the doorsteps of India’s vast population.

Reliance Infocomm network is a pan India, high capacity, integrated (wireless and wireline) and convergent (voice, data and video) digital network, designed to offer services that span the entire Infocomm value chain - infrastructure, services for enterprises and individuals, applications and consulting. The network is designed to deliver services that will foster a new way of life for a New India.