Singapore: Tata Teleservices Ltd, the phone-services arm of the $22 billion Tata Group, plans to borrow $400 million (Rs1,640 crore) overseas to extend its network in India, three bankers with direct knowledge of the deal said.
The Mumbai-based company hired seven banks, including ABN Amro Holding NV, Calyon, Rabo India Finance Pvt. and Standard Chartered Plc. to arrange the seven-year loan, the bankers said, requesting anonymity before an announcement by the company.
S.G. Murli, chief financial officer at Tata Teleservices, declined to comment.
Tata Teleservices, partly owned by Temasek Holdings Pte, had said in March it will spend Rs3,500 crore to develop high-speed services and build base stations, towers and purchase telecommunications equipment.
The provider of wireless and fixed-line services predicted a near-sevenfold increase in subscribers to 100 million by 2011 from 15.9 million.