Indian telecom operator inks big loan agreement with China's lender

09:57, March 10, 2011      

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Indian private-owned leading telecom operator Reliance Communications Wednesday said that it had signed the final document to tap 1.93 billion U.S. dollars loans from Chinese lender China Development Bank (CDB).

As the largest loan in Indian telecom sector, the loan facility is fully underwritten by CDB and will be funded by a syndicate of Chinese banks as well as financial institutions, said a press note by Reliance Communications.

Included is one additional loan facility of 600 million U.S. dollars to finance the import of telecom equipment from Chinese vendor like Huawei and ZTE.

The big-ticket loan with maturity of ten years will provide key support for the expansion of Reliance Communications on G3 operations and help save more than 100 million U.S. dollars interest costs each year.

Reliance Communications has executed a Memorandum of Understanding with CDB in December 2010 during the visit of Chinese Prime Minister Wen Jiabao in India.

Indian telecom operators depend heavily on Chinese telecom equipment makers like Huawei and ZTE for years due to lower prices.

Source: Xinhua
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