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Cellular majors opt for more debt funds

Debt deals worth Rs 14 billion are expected to be concluded in the coming weeks.

T O D A Y

• Eye of the Needle • More cellular debt • Exchanges to improve • HCL 'Carnival' all set

Leading the pack of operators moving towards raising finances a second time are Bombay cellular company BPL Mobile and Delhi's Bharti Cellular.

BPL Mobile, sources say, have received Rs 3 billion debt offer from the Industrial Development Bank of India.

BPL Mobile has not yet taken a final decision on whether it should accept the IDBI offer and is waiting for an offer from ICICI.

IDBI and ICICI have led the first phase of financing - worth Rs 5.25 billion - of the BPL Mobile project.

Bharti Cellular recently mopped up Rs 2.1 billion through the issue of telecom bonds under the Section 10 (23G) of the Income Tax Act. The bonds, the interest income from which is exempt from tax, have been placed with IDBI, ANZ Grindlays Bank and Deustche Bank at 12.5 per cent.

Sources said IDBI has picked up Rs 1 billion worth Bharti Cellular bonds, ANZ Grindlays Bank Rs 750 million and Deutsche Bank Rs 350 million. The proceeds will be used to retire costly debt picked up by Bharti Cellular over the past two years.

- Compiled from the Indian media

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