[global telecoms business] Indian telecoms group Reliance Communications has secured a $1.93 billion long-term loan from the China Development Bank for a period of 10 years.
The operator seeks to use the proceeds from the loan to refinance the loan taken for buying 3G spectrum and also to buy telecom network equipment from Chinese vendors, Huawei and ZTE.
Reliance has been seeking various options to raise funds, including signing an agreement with GTL Infra to transfer its 55,000 telecom towers in exchange for cash and stock in a new joint venture. The deal, however, fell apart and the company is again talking to private equity players.
Reliance paid $1.89 billion for 3G spectrum in 13 telecom districts, which includes Mumbai, Delhi, Kolkata and Punjab, among others. The operator has launched its 3G services in four districts across India.
Reliance gets $1.9bn Chinese loan