Reliance Comm says China loan to help lower interest cost

Reliance Communications said on Wednesday it would see annual interest cost savings of more than Rs5 billion ($111 million) after signing a final loan agreement with China Development Bank.

Debt-ridden Reliance Communications, India's second biggest mobile phone operator, said in December it had signed an accord with China Development Bank for a $1.93 billion, 10-year, syndicated loan.

Reliance Communications said on Wednesday the loan would be fully underwritten by China Development Bank and would be funded by a syndicate of Chinese banks and financial institutions including China Development Bank.

The drawdown of the loan, which will be used for paying mobile spectrum fees and buying telecom equipment, is likely to start this month, the company said.