RCOM gets $1.93 billion loan, stock soars 9%

The debt-laden Reliance Commmunication (RCOM) today announced a deal with China Development Bank (CDB) for availing a loan of Rs.6000 crore ($1.33 billion).

In a disclosure to the stock exchanges RCom stated that the loan of Rs.6000 crore would be used for refinancing the spectrum fees.

An additional credit facility of Rs.2,700 crore ($600 million) has been extended to RCom by CDB for imports and domestic deployment of telecom equipment from Chinese vendors such as Huawei and ZTE.

After witnessing heavy trading of around 34.42 million in the counter, RCom closed 9% higher on NSE.

RCom's closing price on NSE was 99.20 on 09-Mar-2011.