Reliance Communications completes $500 million FCCB issue

Our Corporate Bureau
22 March 2006

Reliance Communication Ventures (RComVL) has completed its foreign currency convertible bond (FCCB) issue and has raised $500 million. The company has issued 5 lakh bonds of $1,000 each with a maturity of five years and one day.

The bonds would not carry any interest and can be converted into equity shares at the end of the maturity period. The conversion price has been fixed at Rs 480.68 per share, a premium of 50 per cent to yesterday's closing price. On conversion, the company would issue 4.62 crore equity shares with a face value of Rs 5 each.

The bonds are expected to be listed on the Singapore stock exchange.

The company would utilise the proceeds from the issue to part-finance the expansion plans. RComVL is the holding company for CDMA mobile operator Reliance Infocomm, GSM operator Reliance Telecom, international under-sea cable network operator Flag Telecom and Reliance Communication Infrastructure.

The company management had announced plans to invest up to Rs 5,000 crore per annum for the next 3 years.

RComVL is trading at Rs 301 (down 6.01 per cent) on the NSE at 2.30 PM today.