RCom repays $500mn ECB loan - Angel Broking

RCom announced that the company has fully repaid a syndicated external commercial borrowing loan of US$500mn or ~Rs. 3,100cr. In July last year RCom had completed full repayment of two syndicated ECB loan of US$500mn each, amounting to US$1bn (~Rs. 6,200cr). Besides, it had paid bilateral ECB loan of more than US$310mn (~Rs. 1,900cr). It availed the two loans in 2007 from a group of international banks, and has repayments have been from RCom's rupee resources. With the repayments of the ECB loans, RCom has become fully liquidated the borrowings from 23 foreign banks and financial institutions. RCom reported a net debt of ~Rs. 41,170cr as on September 30, 2013 and the company attributed the spike in debt to rupee depreciation vis-à-vis the US dollar. We maintain our Neutral rating on the stock.

Source : Equity Bulls

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