Essar raises $3.9-bn loan for communications arm
The loan will be used to refinance existing debt as well as fund further investments and expansion of the telecom-to-oil conglomerate.
By TNN |
MUMBAI: Essar group on Friday said it has raised a $3.59-billion term loan for Essar Communications. The loan will be used to refinance existing debt as well as fund further investments and expansion of the telecom-to-oil conglomerate. The group has lined up major capacity expansion plans in oil, steel and power sectors.
Last week, Essar Oil’s board approved plans to expand capacity at its refinery to 34 -million-tonne (MT) per annum from the existing 10.5 MT at an investment of $6 billion by 2010.
The loan facility was fully underwritten and arranged by BNP Paribas, Citigroup, Commerzbank and Standard Chartered. According to banks that arranged the loan, the deal matures on December 8, 2011, and pays a margin of 90 basis points over LIBOR.
Vodafone earlier this year paid $11.1 billion for a controlling stake in Hutchison Essar from Hutchison Telecom International. Vodafone Essar, formerly Hutchison Essar, is a leading telecommunications mobile operator in India with 37 million subscribers as on October 31, 2007 representing a 17% national marketshare.
The telecom joint venture operates in 16 circles and holds licences for an additional seven circles.
Last week, Essar Oil’s board approved plans to expand capacity at its refinery to 34 -million-tonne (MT) per annum from the existing 10.5 MT at an investment of $6 billion by 2010.
The loan facility was fully underwritten and arranged by BNP Paribas, Citigroup, Commerzbank and Standard Chartered. According to banks that arranged the loan, the deal matures on December 8, 2011, and pays a margin of 90 basis points over LIBOR.
Vodafone earlier this year paid $11.1 billion for a controlling stake in Hutchison Essar from Hutchison Telecom International. Vodafone Essar, formerly Hutchison Essar, is a leading telecommunications mobile operator in India with 37 million subscribers as on October 31, 2007 representing a 17% national marketshare.
The telecom joint venture operates in 16 circles and holds licences for an additional seven circles.
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