S Tel telecom project achieves financial closure

S Tel has accomplished a financial closure of its project with Rs. 2000 crores outlay. Eight leading public sector banks led by IDBI have come forward to provide the Rs. 953 crore long term funding of nine years to the company. The eight domestic banks forming the consortium include State Bank of India, Canara Bank, Punjab National Bank, Central Bank of India, Union Bank of India, Allahabad Bank and Bank of Baroda. In addition, the promoters, Siva Group as well as Batelco have already brought in the equity capital of Rs.1253 crores. B K Batra, Executive Director and Group Head — Corporate Banking, IDBI Bank Limited said, “We understand that Category C telecom circles have high potential for connecting large masses of India while also making business sense due to a huge untapped, less penetrated market. S Tel's sound business strategy and operating model with a focus on these markets are the key parameters for allocating this long term financial funding.”