Aircel to get $1.1-billion loan from six international banks

By November 6th, 2014 AT 2:37 PM

The telecom company, owned by Malaysia’s Maxis and the Reddys of Apollo Hospitals, Aircel will raise nearly $1.1 billion from a clutch of six international banks. The company will get money from six international banks like China Development Bank (CDB), owned by the Chinese government, Nordic Investment Bank and Swedbank AB, according to a media report.The company will use this money to refinance its existing debt.

aircel-logo

Chennai-based Aircel has permits to operate 2G services in 22 telecom circles in the country, 3G in 13 service areas and broadband wireless services, and 4G, in eight circles. It hasn’t started any 4G operations commercially yet.

As per industry estimates, the company’s total debt has shot up to more than Rs. 24,000 crore primarily due to a hefty payout of nearly Rs. 10,000 crore for 3G and broadband wireless access (BWA) spectrum in the 2010 auctions and for expanding operations in 2G and 3G over the years.

In addition, the telecom company is raising another Rs. 14,000 crore from 12 Indian banks, including State Bank of India, Canara Bank, L&T Infrastructure Finance Co Ltd., Syndicate Bank and Bank of Baroda.

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

2
Leave a Reply

avatar
Photo and Image Files
 
 
 
2 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
Kanaga Deepan Nkrish Recent comment authors
newest oldest most voted
Kanaga Deepan N
Kanaga Deepan N

I feel pity for those banks… Telecom Ministry better bring improved M&A guidelines fast, else existance of Aircel will be doubtful…

krish
krish

Aircel Still getting loans? Another 14000 cr from Indian banks? I really doubt if they can reearn the money from customers? A company with such huge losses cannot continue in telecom for long time.

Recent Posts

Vodafone Prepaid Users Can Avail 50% Discount on Amazon Prime Membership: Here’s How

Vodafone is known for its unique offerings in the industry. The UK-based telco has a unique offering under its sleeves...

Dish TV Introduces All in One Plans for Subscribers, Bundles Special Cricket Service

Dish TV, India’s largest single-country DTH provider has listed new plans for winning back its customers. To recall, the service...

Xiaomi Aims to Expand Offline Presence in India: Manu Kumar Jain

Chinese handset maker Xiaomi, which is the biggest smartphone seller in India, aims to continue expanding in offline channels as...