Viom Networks to Raise 1.5K crore

KOLKATA: Telecom tower company Viom Networks will raise about Rs 1,500 crore repayable over 10 years through a mix of domestic and overseas borrowings from a consortium led by Deutsche Bank to bankroll possible acquisitions, a person with direct knowledge of the development said.

The privately-held firm, jointly promoted by the Tata Group and infrastructure group Quippo, had recently put in a bid to buy Vodafone Essar’s telecom towers. It has now lined up long-term debt-finance from a Deutsche Bank-led consortium that includes German development finance agency DEG besides Bank of India and Bank of Baroda. Interest rate on the external commercial borrowing and rupee finance will be about 350 basis points above Libor, the first person said.

Viom’s immediate funds requirement for planned tower asset acquisitions is just under . 2,000 crore, of which roughly 80% is proposed to be funded through borrowings and the balance by the company’s shareholders , said another person privy to the talks, who did not wish to be named.

“We always look at market consolidation opportunities, but we do not comment on individual transactions as a matter of company policy. Funding will not be a problem for a tower company with the highest tenancy ratio, decent internal cash generation and strong shareholders,” Viom Networks’ CEO Arun Kapur told ET.