Reliance Communications seeks $1 bn loan

HONG KONG, Dec 14: Reliance Communications Ltd, whose parent is said to be eyeing a 14 billion dollars bid for the Indian assets of rival Hutchison Telecommunications International Ltd, is seeking a one billion dollars five-year loan, according to market sources.

The company is in discussions with banks that have provided funding in the past for a bullet term loan to be used for capital expenditure, the sources said on Thursday.

A company official declined comment.

Reliance is India's second largest mobile phone operator with over 25 million customers.

India's Anil Ambani group, which controls Reliance Communications, has been reported to be in talks with private equity firms including Texas Pacific Group [TPG.UL], Carlyle Group [CYL.UL], Blackstone Group [BG.UL] and Kohlberg, Kravis Roberts&Co. [KKR.UL] towards making a bid for Hutchison Essar.

Hutchison Essar is the Indian mobile arm of Hong Kong's Hutchison Telecom.

REUTERS