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Idea Cellular achieves financial closure of Rs 2,225 cr
Mumbai, Oct 30: Idea Cellular Ltd has achieved financial closure of over Rs 2,225 crore for its telecom venture with a project cost of around Rs 5,000 crore from IDBI Ltd and Rabo India Finance Pvt Ltd, which is slated as the single largest syndication in the Indian telecom sector.
Mumbai, Oct 30: Idea Cellular Ltd has achieved
financial closure of over Rs 2,225 crore for its telecom
venture with a project cost of around Rs 5,000 crore from IDBI
Ltd and Rabo India Finance Pvt Ltd, which is slated as the
single largest syndication in the Indian telecom sector.
The financial closure would help the company consolidate
its position in the Indian cellular industry and allowing it
to expand operations, Idea Cellular Chief Executive Officer
Vikram Mehmi said in a release here today.
The deal encompasses simultaneous closure on non-recourse basis of seven facilities, covering five telecom circles and involving around 60 parties, Mehmi said.
The long-term facility consists of Rs 1,850 crore for Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh and Chattisgarh circles and Rs 375 crore for Delhi circle, he said.
The entire loan is on a limited recourse basis with a tenure of nine years and would be utilised towards meeting the capital expenditure and refinancing debts of higher costs or shorter tenures, he said.
While the financing for the existing circles has been syndicated by IDBI as the lead manager, that for Delhi circle has been arranged by Rabo India Finance, he said, adding the financing was done on a 1:2 ratio.
Idea Cellular has also received comprehensive guarantee of Rs 170 crore from Nordic Investment Bank (NIB), which would be utilised for credit enhancing of its non-convertible debentures (NCDs), which have been rated at AAA (FSO), he said.
Bureau Report
The deal encompasses simultaneous closure on non-recourse basis of seven facilities, covering five telecom circles and involving around 60 parties, Mehmi said.
The long-term facility consists of Rs 1,850 crore for Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh and Chattisgarh circles and Rs 375 crore for Delhi circle, he said.
The entire loan is on a limited recourse basis with a tenure of nine years and would be utilised towards meeting the capital expenditure and refinancing debts of higher costs or shorter tenures, he said.
While the financing for the existing circles has been syndicated by IDBI as the lead manager, that for Delhi circle has been arranged by Rabo India Finance, he said, adding the financing was done on a 1:2 ratio.
Idea Cellular has also received comprehensive guarantee of Rs 170 crore from Nordic Investment Bank (NIB), which would be utilised for credit enhancing of its non-convertible debentures (NCDs), which have been rated at AAA (FSO), he said.
Bureau Report