Credit rating agency, Credit Analysis and Research, or CARE

RCOM Plans to Halve its Debt before March 2013 Our debt is due to the fact that we are the only company that never went the equity route to raise capital and the promoters continue to hold over 67% stake in Reliance Communications. In the past five years, we have invested .50,000 crore towards capital expenditure for rolling out networks.Capex is coming down it was $1 billion each over the past two years and for the current fiscal it is only .1,500 crore. We are cash positive now. RCOM has also reduced its interest expenditure by . 500 crore annually because of the $1.93 billion loan from China Development Bank, which includes a $600-million credit line for equipment from Chinese vendors Huawei and ZTE. For the tower deal, the due diligence stage has been completed and we are in the process of examining the formal bids. So far, the largest PE transaction in India has been in the region of $800-$900 million and this will be multiple times that amount. There are two-three different combinations of PE players who have placed bids.

After the deal is through, against a maximum time of six months, RCOMs debt will reduce to two times that of its by March 2013. Our next target will be to bring it down further to the equivalent of our EBIDTA by 2014

EBIDTA