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3G
Telcos including Bharti, TTSL start funding raising exercise towards 3G spectrum payment
TT Correspondent |  New Delhi |  26 May 2010

Indian telecom operators have started arranging to raise funds to make payment as per the successful bids for 3G spectrum.

Apart from issuance of commercial papers (CPs) operators are also exploring alternative sources of funds. Collectively operators have raised Rs ,7500 crore to Rs.8,000 crore by way of issuance of CPs with the final amount expected to be Rs.10,000 crore. Reliance Communications and Aircel have each raised Rs.3000 crore through CPs.

Term loans from banks will also account for a bulk of the debt.

Reports say, Bharti Airtel has raised Rs.8,500 crore from a consortium of financial institutions, including the State Bank of India. Additionally, HDFC Bank has agreed to part finance the payment.

Bharti Airtel’s loan is estimated to spread over six years at an interest of 8-9%.

Tata Teleservices (TTSL) too has raised over Rs.4,500 crore through bonds and loans.

LIC has subscribed to 10-year bonds floated by TTSL for Rs 1,000 crore. It also raised another Rs 1,000 crore through commercial paper with a tenure of one year from various institutions.

Apart from this, TTSL has also raised money directly through banks, which include Rs 1,500 crore for a tenure of five years and Rs 1,135 crore for one year with the yearly interest rates ranging from 7.33 % to 8.3% %, say reports.

    
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26 May 2010(IST)  
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