Mumbai, Jan 17: Reliance Communications (RCom) Tuesday said it had tied up refinancing for redeeming outstanding foreign currency convertible bonds (FCCBs) worth $1.18 billion (Rs.6,125 crore).
“The refinancing is to be provided by the Industrial and Commercial Bank of China (ICBC), China Development Bank Corp (CDB) and Export Import Bank of China (EXIM) and other banks,” RCom said in a regulatory filing.
FCCBs are bonds used by companies to raise money from overseas sources.
“RCom will benefit from extended loan maturity of 7 years and attractive interest cost of about 5 percent. The loan proceeds would be used for refinancing the entire redemption amount of foreign currency convertible bonds which are due for redemption on March 1, 2012,” the Reliance Group company added.
The announcement saw the company’s scrips rise 5.61 percent in early trade at the Bombay Stock Exchange and touch an intra-day high of Rs.91.30. The stock was trading 3.88 percent up at Rs.89.80, around 1.10 p.m.