RInfra to raise $350 mn via overseas bonds

Anil Ambani-promoted Reliance Infrastructure plans to raise $350 million (₹3,000 crore) through foreign currency convertible bonds (FCCB) to repay its rupee debt and start new businesses such as electric power generation.

Reliance Infrastructure, which is in the business of road construction, metro rail, and power generation, also approved plans to float four companies last week, according to the disclosures made by the company to the stock exchange.

The company has debt facilities in the form of term loans of ₹2,253 crore and non-convertible debentures of ₹ 700 crore respectively, according to a Care Rating report dated February 26.


It has term loans from ₹1,505 crore from Yes Bank - which the bank sold to JC Flowers Asset Reconstruction Company.

IDBI Bank, Jammu & Kashmir Bank and Axis Bank have exposures of ₹600 crore, ₹82 crore and ₹66 crore, respectively, the same Care Rating report said.

The company signed a standstill agreement with JC Flowers ARC in early January this year, under which the ARC agreed not to take legal action until at least March 20 to recover its dues.

An exchange filing shows that this deadline was extended to March 31 and later to May 30.

A lender said the company had sought an extension of the standstill date to repay the remaining debt.

Reliance Infrastructure said that it has paid ₹1,347 crore to JC Flowers ARC - of which ₹817 crore was paid till March 31 and the remaining ₹530 crore as of the end of April 2024, the company disclosed to exchanges.

The lender cited above said the FCCB proceeds will likely be used to repay the remaining debt of JC Flowers ARC and other banks and bondholders.

In the last week, Reliance Infrastructure has also floated four new subsidiaries: Reliance Jai (RJPL), Reliance Unlimit (RUPL), Reliance EV (REVPL), and Reliance Risee (RRPL).

These companies will engage in electric power generation, information technology (IT) consultancy, infrastructure, and the manufacturing of vehicles for fuel transport.

The company approved a proposal to raise $400 million in the form of FCCBs at ₹123 a share in August 2022, but it did not proceed with the plan.