Essar Comm to raise $3.95 bn syndicated loan

Essar Comm to raise $3.95 bn syndicated loan


London: Essar Communications, Ruias-promoted telecom company and partner of UK giant Vodafone in India, is planning to raise $3.95 billion of syndicated loan.

The loan proceeds would help Essar monetise its liquidity rights agreed with Vodafone as part of the British company’s acquisition of Indian mobile operator Hutchison Essar, now known as Vodafone Essar, earlier this year.

The funds would also be used for partly refinancing the existing debt and to fund further investment and expansion plans of the group. Vodafone had acquired a controlling stake in Hutch Essar earlier this year for 10.9 billion dollars from Hong Kong- based Hutchison Telecom International Ltd (HTIL).

The loan was launched by arrangers BNP Paribas, Citigroup, Commerzbank and Standard Chartered on Monday, a statement said here. The fully-underwritten deal would mature in December 2011 and pays a margin of 90 basis points over LIBOR.