Rupee fall to increase FCCB repayment burden: Firstsource CEO

MUMBAI: Every one Re 1 fall against the dollar will increase the FCCB loan burden on back office firm Firstsource Solutions by $ 3 million, its CEO an MD Rajesh Subramaniam said, as the rupee hit a new low of Rs 54.46 on Wednesday. Firstsource has outstanding converitble bonds of $ 237 million.

In the last 60 days, the rupee has gone from a high of Rs 50.70 to the dollar to a fresh low on Wednesday increasing the rupee repayment burden for firms that have issued dollar convertible bonds.

With the share price of a majority of firms nowhere near their conversion rate, the bonds will now have to be repaid with interest when they mature.

Firstsource has bought back some of its bonds, and Mr Subramaniam said it intends to buyback more once the RBI window for it opens.