Rcom redeems outstanding FCCBs making $1.18 billion payment
29 Feb 2012
Telecom service provider Reliance Communications today said it had paid $1.18 billion 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.
It added, the redemption amount was inclusive of the premium of 27.69 per cent.
The company has made the payment to Deutsche Bank AG, London Branch, the principal agent of FCCB.
According to the statement, the paid up equity capital of the company would remain unchanged after the redemption of the FCCBs and accordingly, RCom would be not required to allot 6,17,25,849 equity shares of Rs5 each arising out of the potential conversion of said FCCBs.
The Anil Ambani group firm had signed definitive agreements with three Chinese banks for refinancing its outstanding debts and the refinancing had been done by Industrial and Commercial Bank of China Ltd ( ICBC), China Development Bank Corporation (CDB) and Export Import Bank of China (EXIM).
(Also see: Reliance Communications gets RBI nod on FCCB refinancing)