RCOM and Relaince Jio completed securitization under inter-city fibre agreement
Reliance Communications completed securitization of proceeds under the inter-city Fibre Agreement. RCOM signed this agreement with Reliance Jio Infocomm Limited in April 2013. This agreement costs almost Rs. 1,200 crore (US$ 200 million).
RCOM has utilized the proceeds from securitization to repay high cost rupee debt. It resulted in noteworthy cost savings of interest for RCOM. The securitization has been completed with Indian and foreign banks.
The total deliveries of 1.2 lakh kms intercity Fibre under this agreement were expected to be completed within the same year when RCOM completed securitization of proceeds.
Reliance Jio Infocom Limited is a changed name of Mumbai based Infotel Broadband Services Limited which established in 2007. The name changed 2 years back.
A meeting was scheduled in beginning of this month in which executives form RCOM and Reliance Jio Infocomm were supposed to meet the officials of telecom department from Wireless Planning & Coordination wing. The alignment of spectrum frequencies was going to be the center of this discussion.
Reliance Communications Limited is founded by the late Shri Dhirubhai H Ambani. It is an essential arm of Reliance Group. The Reliance Group currently has a net worth up to Rs. 220,000 crore (US$ 16.5 billion). With more than 3 million shareholders, Reliance Industries Limited has 45.34% of total shares of the company, whereas rests of the 54.66% shares are held by public shareholders. Those public shareholders also include corporate bodies and FII.
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