Reliance draws first instalment from $ 750 mn loan
Wednesday, March 9 2005 15:17 Hrs (IST) - World Time - 
Washington:
Reliance Infocomm drew its first instalment from a $ 750 million loan facility provided by Export-Import Bank of the United States and Export Development Bank of Canada (EDC) last week.
The loan facility that Reliance negotiated in December last year (2004) is the largest telecom installations loan for any company world wide in 2004.
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While EXIM Bank of US has guaranteed $ 500; EDC has given a direct loan of $ 250 million, according to a release issued by international firm Milbank, which represented both financial institutions.
"Having successfully met all conditions to borrowing, Reliance Infocomm drew down its first funds last week from a $ 750 million facility provided by EXIM Bank of US and EDC," the release said.
It did not, however, mention size of the first instalment.
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The loan supports purchase of telecom equipment from Lucent and various Canadian exporters, including Nortel.
The financing, which was arranged by Citigroup Global Markets, will be used by Reliance for installation, operation and development of its mobile telecommunications network over substantial part of India and roll-out of its broadband services.
PTI
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