As another step towards reducing the enormous debt, Anil Ambani led Reliance Communications (RCom) on Friday announced the on time payment of another batch of External Commercial Borrowing (ECB) worth $ 500 million or nearly Rs3,100 crore. This is the third time RCom has paid off ECB loans in the current financial year, FY14.
In its official statement filed with BSE, the company said, "It has fully repaid another syndicated ECB loan of $ 500 million, Rs3,100 crore approximately, on the scheduled due date." As per RCom's second quarter (Q2) results, as on September 30, company had a net debt of Rs41,169 crore which now has been reduced to Rs 38,069 crore.
By the end of Q2 FY14, foreign currency debt on RCom stood at Rs28,910.2 crores while Rs13,842 crore domestic Rupee loans. Earlier in July, RCom had completed full repayment of two syndicated ECB loan facilities worth $ 500 million each, aggregating $ 1 billion or nearly Rs 6,200 crore. These loans were availed in the year 2007 from a group of international banks.
In addition, company had also made on time repayments of another $ 310 million or nearly Rs. 1,900 crore in respect of other foreign currency loans, on the respective due dates during the quarter ended 30th June, 2013.
Further adding in the statement, RCom said, "With these repayments, RCom has now fully liquidated the borrowings from 23 foreign banks and financial institutions."During the last quarter, while company's revenue grew marginally by 8 per cent to Rs 5,835.4 crore, RCom's net profit surged sharply by 522 per cent to Rs 675 crore.