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.
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.