Reliance Jio
Reliance Jio prepays Rs. 30 crore clearing all deferred spectrum liabilities
Mumbai/IBNS: Reliance Jio Infocomm Ltd (RJIL) has announced it has paid Rs. 30,791 crore (including accrued interest) to the Telecom Department towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auctions from 2014 to 2016 and the one acquired in 2021 through trading of right to use with Bharti Airtel Limited.
The company had acquired 585.3 MHz spectrum in the said auctions/trading.
RJIL had executed the first tranche of prepayment on the anniversary date in the month of Oct 2021 pertaining to spectrum acquired in auction in the year 2016.
Subsequent to Department of Telecom’s decision in the month of Dec 2021 providing the telcos the flexibility to prepay their deferred spectrum liabilities on any date, RJIL has now prepaid in the month of January 2022, the entire deferred liabilities acquired in auction in the year 2014 and 2015 as well as spectrum acquired through trading.
These liabilities were due in annual installments from FY 2022-23 to 2034-2035 and carried interest rate between 9.30% to 10% p.a. with an average residual period of 7+ years.
The company estimates that the above prepayments will result in interest cost savings of around Rs. 1,200 crores annually, at the current interest rates.
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