RCOM gets Rs 1200 cr from Jio fibre deal
Anil Ambani-controlled RCom todaysaid it has completed securitisation of proceeds from its Rs 1,200 crore ($200 million) deal with Reliance Jio.business Updated: Jul 12, 2013 02:03 IST
Anil Ambani-controlled RCom todaysaid it has completed securitisation of proceeds from its Rs 1,200 crore ($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 ($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.