Essar Communications said it has mandated four international banks to raise a syndicated loan of $3.59 billion to refinance existing debt and fund further investment and expansion plans of the group.
The loan facility enables the telecom arm of Ruias-promoted conglomerate Essar group to monetise the liquidity rights agreed with Vodafone, which gives the UK firm an option to buy Essar's stake in Indian operator Vodafone Essar.
Under the terms of partnership announced in March, Essar will have an option to sell its 33 per cent stake in Vodafone Essar for $5 billion or to sell shares worth $1-5 billion to Vodafone at an independently appraised price.
ECIL has mandated BNP Paribas, Citigroup Global Markets Limited, Commerzbank AG and Standard Chartered Bank to arrange a fully-underwritten $3.59 billion term loan on their behalf.
Standard Chartered has underwritten 35 per cent of the total amount, Commerzbank 25 per cent, BNP Paribas 20 per cent and Citigroup 20 per cent.