RCom receives RBI approval for FCCB redemption

MUMBAI: Telecom services major Reliance Communications today said it has received RBI approval for the refinancing for redemption of its outstanding FCCBs (Foreign Currency Convertible Bonds) worth Rs 5,825 crore.

"RCom has received RBI approval for the refinancing being provided by ICBC, CDB and EXIM tied up refinancing for redemption of its outstanding FCCBs," RCom said in a filing to the BSE.

The outstanding FCCBs of USD 1,182 million (approximately Rs 5825 crore at the prevailing USD exchange rate of Rs 49.30) will be redeemed on the due date of March 1, 2012, it added.

Rcom will benefit from extended loan maturity of seven years and attractive interest cost of about five per cent, it said.

The refinancing is being funded by Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB) and Export Import Bank of China (EXIM).

FCCBs are bonds that are issued in currencies different from the issuing company's domestic currency.

Shares of the company were trading at Rs 102.80 apiece in late afternoon trade, down 1.63 per cent from its previous close on the BSE.