Reliance Communications repays outstanding loans worth Rs 50 billion

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Reliance Communications repays outstanding loans worth Rs 50 billion

September 15, 2009

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Reliance Communications (RCOM) has repaid outstanding loans amounting to Rs 50 billion, three years ahead of schedule.

The move is likely to benefit the company by saving it interest costs of up to Rs 7.5 billion a year on an annualised basis. Prior to the repayment, the company had a debt of about Rs 250 billion which it had borrowed in order to expand its telecom networks.

RCOM is expecting to have a cash inflow of about Rs 100 billion by March 2010, which, together with its current reserves of Rs 70 billion, may be used for other such early loan repayments.