Rcom gets loan from chinese bank

Rcom has recieved a $750 million loan from china development bank that would be invested in building a nation wide GSM footprint for the telephony major.The Anil Ambani group company has received the loan for a ten-year period and at a rate of Libor (London Inter-Bank Offered Rate) plus 80 basis points. RCom had received the Reserve Bank of India (RBI) approvals for the loan, sources close to the development said. The loan gives significant advantage to the company's GSM foray as it carries a tenure 3 to 4 years longer and around 50 basis points lower than any other options, they said. When contacted, an RCom spokesperson confirmed the development. The company will use a large part of the loan to purchase GSM electronic equipment from Taiwanese electronic major Huawei. RCom plans to launch nationwide GSM services by the end of this financial year and has announced a capital expenditure of $1 billion for active GSM infrastructure. RCom will lease passive infrastructure from Reliance Infratel, a company in which it holds 95 per cent equity. The company has begun discussions with leading equipment manufacturers such as Huawei, Alcatel Lucent, ZTE, Ericsson, Motorola and Nokia, among others.