Chinese banks' loans for RCom

Chinese banks' loans for RCom

Reliance Communications (RCom), on Tuesday, said it has tied up refinancing for outstanding FCCBs (Foreign Currency Convertible Bonds) worth Rs 6,125 crore.

The refinancing is being funded by Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB), Export Import Bank of China (EXIM), and other banks.

The company will benefit from extended loan maturity of seven years and attractive interest cost of about 5 per cent. The loan proceeds would be used for refinancing the entire redemption amount of FCCB which are due for redemption on March 1, 2012.

It may be noted that FCCBs are bonds issued in currencies different from the issuing company's domestic currency.

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