Reliance Communications Ltd (RCOM) has completed securitisation from Rs 1,200 crore ($200 million) intercity optical fibre deal signed with Reliance Industries’ (RIL) communication arm Reliance Jio Infocomm Ltd.
In April this year, Ambani brothers struck a deal under which Mukesh will use Anil’s optical fibre network for launching 4G services. Reliance Jio paid the amount as a one-time indefeasible right to use RCom’s nationwide optical fibre infrastructure. As per the deal, RCOM will in turn have reciprocal access to optical fibre infrastructure to be built by Reliance Jio in the future.
The amount from securitisation has been used to repay high cost rupee debt, resulting in significant interest cost savings for RCOM.
The securitisation has been completed with Indian and foreign banks. Reliance Jio will use multiple fibre lines across RCOM’s 1.2 lakh km inter-city optical fibre network, as per the agreement.
Last month, Reliance Jio signed $2.1 billion tower-sharing deal with RCOM to roll out 4G services. According to that pact, Reliance Jio will use up to 45,000 ground- and rooftop-based towers across RCOM’s network for accelerated roll-out of its 4G services.
Shares of RCOM were closed at Rs 142.25 per share, up 1.46 per cent on the BSE in a strong Mumbai market on Thursday.
(Edited by Joby Puthuparampil Johnson)