The second-largest operator in India, Reliance Communications Ltd., has landed a $1.93 billion loan from China Development Bank Corp. and other financial institutions in China.
The company said the bank roll will be used to refinance $1.33 billion in fees for 3G spectrum licenses and up to $600 million will be spent on equipment from Huawei Technologies Co. Ltd. and ZTE Corp.
Reliance bid for 3G licenses in India earlier year and won rights to spectrum in 13 of the service areas awarded. ZTE has been tapped to supply 3G equipment in eight of those areas and Huawei will sell the carrier equipment for the other five.
This latest financing deal marks the first time an Indian operator has sought out loans from the Chinese market. And the competitive loan terms being offered are likely to have helped Chinese vendors ZTE and Huawei land business in this deal.
Reliance secures $1.93B loan for network in India
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