Telecom operator Reliance Communications (RCOM) informed its lenders that it would repay Rs 25,000 crore after closing its transactions with Aircel and Brookfield.

Anil Ambani-promoted RCOM earlier said it is expecting to cut down its debt including the deferred spectrum payment liability by Rs 20,000 crore or $3.07 billion or 40 percent of total debt.

Aircel’s debt will reduce by Rs 4,000 crore or $615 million or 22 percent of total debt, upon completion of the transaction.

“Post signing of binding documents for the Aircel and Brookfield transactions, RCOM has formally advised all its lenders that it will be making repayment of an aggregate amount of Rs 25,000 crore from the proceeds of these two transactions, on or before 30th September 2017,” said RCOM official spokesperson.

RCOM said the amount will cover include both all scheduled repayments and pre-payments to all lenders on a pro-rata basis.

RCOM is engaged in discussions with its lenders to obtain their consents for the two transactions and to refinance scheduled installments falling due in the interim period up to 30 September, 2017, to facilitate closing of both transactions.

RCOM expects to meet its all debt repayment obligations in line with these plans, and substantially reduce its overall debt.

The RCOM-Aircel merger will create a strong telecom operator ranked amongst India’s top 4 telecoms by customer base and revenues, also ranking amongst the top 3 operators by revenues in 12 important circles.

The merged entity will have the second-largest spectrum holding amongst all operators, aggregating 448 MHz across the 850, 900, 1800 and 2100 MHz bands.

It will be one of India’s largest private sector companies, with an asset base of over Rs. 65,000 crore or $10 billion and net worth of Rs 35,000 crore or $5.38 billion.