RCoVL raises $500 mn from overseas market
The company issued five lakh Foreign Currency Convertible Bonds, each for $1,000, and will be listed on the Singapore Stock Exchange.india Updated: Mar 22, 2006 17:05 IST
Reliance Communication Ventures, the holding company of Anil Ambani's telecom businesses, on Wednesday raised $500 million (over Rs 2,200 crore) from the overseas market for funding its expansion.
The company issued five lakh Foreign Currency Convertible Bonds, each for $1,000, and will be listed on the Singapore Stock Exchange. The bonds will have a tenure of five years, RCoVL informed the Bombay Stock Exchange.
RCoVL Board of Directors had recently approved tapping the international market for raising long-term resources through issue of FCCBs at a premium to the market price of the company's equity shares.
The company, India's second largest mobile phone operator with a total 19.2 million subscribers, had earlier announced it would invest Rs 5,000 crore every year for the next three years for expansion.
The bonds issued by the company have a conversion price of Rs 480.68 per share, representing a premium of 50 per cent to the closing price of the shares on March 21, 2006 and entail a 4.65 per cent yield to maturity per annum.
The equity share capital of the company would increase by about 4.62 crore shares of Rs 5 each, if the FCCBs are fully converted into equity.
RCoVL has entered into a subscription agreement with the sole bookrunner, Deutsche Bank, which is subject to necessary approvals.