Reliance Infocomm To Raise more loans from Banks !

[@ksh@T 20]

Reliance Info plans to raise $500m

MUMBAI: Reliance Infocomm, an Anil Ambani group company, is exploring the possibility of raising $500m through a foreign currency syndicated loan. The company has held talks with international banks to raise this amount.

Sources said that $300-350m of the proceeds will be utilised to refinance earlier debt, and the remaining will be for capital expenditure purposes. Reliance Infocomm is currently an unlisted company.

Vedanta and Tata Steel are looking at borrowing through external commercial borrowings, said sources familiar with the developments. Reliance Infocomm had raised $300m in October '04 through a seven-year syndicated loan. A senior Reliance Infocomm official told ET, “We are (currently) not in the market to raise money. We are evaluating plans.”

Bankers feel that the new norms on unlisted firms, which also require these companies to get themselves listed in the domestic market within three years of a GDR/ADR or FCCB issue, are likely to make several issuers look at the syndicated loan market.

In the recent past, there have been a rush of FCCB issues on the back of a rising stock market. The sensex touched a record high of 7928 on Friday and closed at 7899. FCCBs are quasi-equity issues which give investors the right to convert their bonds into equity at a pre-decided strike price.

Investors stand to gain if the traded share price of the company is higher than the strike price. A top-rated borrower is able to raise funds through ECBs at 5.5-5.75%. This pricing includes the hedging cost (forward premia for the forex exposure). The rupee:dollar six-month forward premium is 0.45%.

Source: The Economic Times

[@ksh@T 20]

Relaince Infocomm to raise $500m

New Delhi: In its first major financeial initiative after anil ambani took over the reins, Reliance Infocomm will raise $500 million from overseas markets, mainly to influence high costs debt. the company is likely to enter the overseas market within next 3-4 weeks, banking industry sources said. According to sources, the company had taken high cost loans in the previous time at the time of rolling the nextwork accross country

what the hell is this overseas market

Edited November 10, 2005 by Chirag

[ashoksoft 83]

International calling cards. .. in US.... yeah they have some crap there, at least that is what one of the hush hush dinchaks from rim told me once...

[basant_jp 0]

Yeah...International calling cards in US, UK and Canada.....and yes, they are quite popular among the NRIs there....

Edited November 11, 2005 by basant_jp

[@ksh@T 20]

what happened to their LAUNCHING in pakistan...i think i have a post in this forum...abt it!

[abhay 0]

what happened to their LAUNCHING in pakistan...i think i have a post in this forum...abt it!

46553[/snapback]

yuo i think every1 including reliance 4got that

[RajanPERT 0]

Reliance Infocomm will raise $500 million from overseas markets, mainly to influence high costs debt.  the company is likely to enter the overseas market within next 3-4 weeks

The reliance is planning to find some financial help from oversease market. Like Airtel do. So they are planning to enter to overseas market for financial help only. I think it is not related to service or telecom.

Thanks and Take Care!

[Arun 795]

And another one now...

Reliance Info to raise $300 mn loan

January 09, 2006 16:25 IST

- Rediff.com

Reliance Infocomm, an Anil Ambani group company, is likely to clinch next week a $300 million foreign loan to repay previous high cost debts.

The mobile operator will sign the agreement for this loan by January 15. Thirty global banks have been involved in arranging the loan spread over 5-7 years, banking sources said. When contacted, Reliance Infocomm officials declined to comment.

The entire $300 million syndicated foreign currency loan is likely to bear an interest rate of less than Libor+100 basis points.

The proposed loan will be used to repay the company's earlier $300 million dollar loan, which was raised at a higher rate of Libor plus 200 basis point, sources said, adding this will directly result in a saving of 100 basis points above Libor, which in turn will go a long way in improving the bottlomline and profitability of the company.

The lead arranger for the proposed loan would be Citibank, ABN Amro, HSBC, Standard Chartered Bank, BNP Paribas, DBS, ING and Calyon.

The offer has received fantastic response from the bankers and 30 banks from countries like Japan, Taiwan, China, Indonesia, Bank of Sumitomo, China Trust Bank, Rabobank and KfW participated in raising the loan, among others.

Investment banking sources said considering that it is just a $300 million loan, the wide participation of banks in its shows the credibility of the company in the global financial market.

With the competitive rate at which the company has been able to raise this amount, sources said such rates were only offered to AAA rated corporates.

The old $300 million syndicated loan was arranged by a consortium of eight banks: ABN-AMRO NV, Australia and New Zealand Banking Group, Bank of Baroda, BNP Paribas, DBS Bank, ICICI Bank, Mashreqbank and Rabobank.

Reliance Infocomm, which offers CDMA-based mobile services, has pan-India presence and has 1.3 crore (13 million) subscribers. As a Unified Access Service provider, it also operates fixed line and fixed wireless services.

[@ksh@T 20]

taking another loan to pay other loan and the chain will continue...hahahahaha

[supernova 47]

mere papa ka sapna paraya maal apna... ha ha

[amitbt22 2]

supernova i think ur line does not make ne sense in this post but they r taking more burdens to serve d free services & reliance must be in shortage of money :'(

Edited January 9, 2006 by amitbt22