Reliance Communication completes securitisation from the deal with Reliance Jio - Indian Express

PTI : Mumbai, Thu Jul 11 2013, 17:01 hrs Anil Ambani controlled RCom today said it has completed securitisation of proceeds from its Rs 1,200 crore (USD 200 million) deal with Reliance Jio. The amount from securitisation has been utilised to repay rupee debt, saving significant interest costs for the company. The firm also added that deliveries under the agreement for providing optic fibre network will be completed in the current fiscal. In a statement, Reliance Communications (RCom) said it has completed securitisation of proceeds under Rs 1,200 crore (USD 200 million) inter-city Fibre agreement signed with Reliance Jio Infocomm Ltd (Reliance Jio) in April 2013." Securitisation generally refers to raising money by providing some collateral with lenders. In April this year, Billionaire Ambani brothers struck a Rs 1,200-crore deal under which Mukesh will use his younger sibling Anil's optic fibre network for launch of his telecom venture. Under the terms of the agreement, Reliance Jio will utilise multiple fibre pairs across RCom 1,20,000 kilometres inter-city fibre optic network as the backbone for rolling out its 4G services. In the release, RCom said: "The proceeds from securitisation have been utilised to repay high cost rupee debt, resulting in significant interest cost savings for RCom." The securitisation has been completed with Indian and foreign banks, it added. RCom said that deliveries of inter-city fibre links to Reliance Jio have already commenced. "The total deliveries of 1,20,000 kms inter-city fibre under the agreement are expected to be completed within the current financial year," it said. ALSO READ Aspect software strikes acquisition deal with Voxeo for USD 150 million Lack of demand forces Mahindra & Mahindra to call off production temporarily CCEA clears disinvestment of STC, ITDC Govt gives nod to proposal to replace DGCA with new regulator Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEiK5CVfD7QcEK1M1Knox3KJkRDAw&url=http://www.indianexpress.com/news/reliance-communication-completes-securitisation-from-the-deal-with-reliance-jio/1140599/

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