Reliance Infocomm Set To Raise $250 Mn Overseas

[Arun 795]

Reuters - Friday, July 02, 2004

Reliance Infocomm Ltd, plans to raise $250 million through an overseas loan, a source close to the deal told Reuters on Thursday.

ABN Amro, ANZ Investment Bank and ICICI Bank are the arrangers to the syndicated loan, which is likely to be launched this week.

The deal has two tranches carrying maturities of five and seven years, the source said.

Reliance Infocomm is 45 per cent owned by petrochemicals giant Reliance Industries Ltd. Earlier this year, Reliance Industries had placed a five-year offshore loan at 90 basis points over the London Interbank Offered Rate or Libor.

Indian companies and banks such as Sterlite Industries, UTI Bank and ICICI Bank are also currently in the market to raise foreign currency loans to take advantage of lower interest rates abroad.