S-Tel Raises Rs 953 Cr Debt To Fund Operations
S-Tel has achieved financial closure of Rs 2,000 cr to fund its mobile telephony service project. Rs 1,253 cr was brought in as equity by the promoters - Siva Group ans Batelco, while Rs 953 cr was raised as debt from a consortium of eight banks led by IDBI for a nine-year period at 12.75% interest.
Although, the consortium was ready to extend Rs 1,500 crore, S-Tel plans to borrow only Rs 953 crore in a phased manner in line with project requirements. The other banks are SBI, Canara Bank, Punjab National Bank, Central Bank of India, Allahabad Bank and Bank of Baroda.
While the financial requirement for its 2G mobile telephony service project is Rs 2,000 crore, the balance Rs 206 crore is being kept aside as buffer for any future plans in the telecom space like ISP or related services.
S-Tel is a 51:49 JV between the Siva group and Bahrain Telecom. The The company has licences for six circles — Himachal Pradesh, Orissa, Bihar, Jharkhand, Jammu and Kashmir and Assam.
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