Reliance Communications (RCom) has completed securitisation of proceeds from the Rs 1,200-crore fibre agreement signed with Reliance Jio Infocomm.
The Anil Ambani group company has used the proceeds to repay high-cost rupee debt. This has resulted in “significant” interest cost savings for the company, RCom said in a statement.
The securitisation has been completed with both Indian and foreign banks, it added.
In April this year, billionaire Mukesh Ambani-controlled Reliance Jio Infocomm had entered into a Rs 1,200-crore agreement with RCom to use its fibre optic network for rolling out 4G services. The Ambani brothers were joining hands nearly eight years after they decided to part ways.
Inter-city fibre links
The Rs 1,200-crore would be one-time indefeasible right to use (a telecom contract) fees for sharing RCom’s nationwide inter-city fiber optic network infrastructure.
Deliveries of inter-city fibre links to Reliance Jio have already commenced, RCom said, adding the total deliveries of 1.20 lakh kms inter city fibre is expected to be completed within the current financial year.