MUMBAI, India (AP) - Debt-laden Indian telecoms company Reliance Communications said Wednesday it has finalized a $1.93 billion Chinese loan which will save it hundreds of millions in interest.
The loan, which Reliance said is the largest ever between the two Asian giants, comes amid often frosty relations.
The 10-year loan - underwritten by China Development Bank and financed by a consortium of Chinese banks - will result in an annual savings of over 5 billion rupees ($111.1 million) on interest costs, Reliance said.
Most of the loan - $1.33 billion - will be used to refinance Reliance's pricey 3G spectrum fees. The remaining $600 million will be used to finance imports of Chinese telecom equipment, mainly from Huawei and ZTE.
India resents its gaping trade deficit with China and last year blacklisted Chinese telecom equipment makers because of security worries.