India ICICI To Fund Hughes Ispat Via Underwriting, Loans|
Friday, March 24 9:00 PM SGT
BOMBAY (Dow Jones)--Indian development bank and financial services company ICICI Ltd. (IC) signed an agreement with telecom company Hughes Ispat Ltd. to fund the latter's expansion in India, Hughes Ispat said Friday.
ICICI will provide a debt underwriting facility of $225.0 million to Hughes Ispat, which includes a short-term funding facility of $87.0 million. It will also arrange equity for the project.
Hughes Ispat said the $225.0 million will meet the entire commercial debt requirements of its $750.0 million telecom project in the western Indian state of Maharashtra.
Hughes Ispat is planning to raise $140.0 million through private placement of equity and is being assisted by ICICI Securities, the investment banking arm of ICICI.
Hughes Ispat is owned by U.S.-based Hughes Network Systems, U.S. Alltel Corp. and the Ispat group in India.
It has a license to provide basic telecommunication services in the Indian states of Maharashtra and Goa.