Reliance Communications pays $1.18 bn to redeem outstanding Foreign Currency Convertible Bonds

NEW DELHI: Telecom service provider Reliance Communications today said it has paid USD 1.18 billion (Rs 5,825 crore) for redemption of its outstanding FCCBs ( Foreign Currency Convertible Bonds).

"RCom has made payment of USD 1,182 million (Rs 5,825 crore at the USD exchange rate of Rs 49.30) to make the largest-ever redemption of all the FCCBs from the USD 1,000 million issued in February, 2007 and due on March, 1, 2012," RCom said in a statement.

The redemption amount is inclusive of the premium of 27.69 per cent, it added.

The Company has made payment to the Principal Agent of FCCB - Deutsche Bank AG, London Branch.

The paid up equity capital of the company will remain unchanged post redemption of these FCCBs and accordingly, RCom will be not required to allot 6,17,25,849 equity shares of Rs 5 each arising out of the potential conversion of said FCCBs, the statement said.

The Anil Ambani group firm had signed definitive agreements with three Chinese banks for refinancing its outstanding debts.

The refinancing has been done by Industrial and Commercial Bank of China Ltd ( ICBC), China Development Bank Corporation (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 94.10 apiece in late afternoon trade, down 0.16 per cent from its previous close on the BSE.