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New Delhi Feb. 5 Reliance Communications today, announced the successful completion of a $1-billion Foreign Currency Convertible Bonds (FCCBs) offering in the international markets. The company claimed it to be the country's largest zero coupon FCCB offering till date. Previous largest deal from India was also by RCOM when it raised $500 million in March 2006.

The instrument has a tenor of 5 years at a conversion price of Rs 661 per share, representing a premium of 30 per cent compared to prevailing market price, said a company spokesperson. The global deal, sold across Asia, Europe and US, was over subscribed three-four times within two hours of launch at 6 p.m.

The proceeds will be used for Reliance Communication's capital expenditure of $2.5 billion during 2007-08. The company is planning to expand its telecom network by adding new 20,000 towns across the country. Bankers for the issue were JP Morgan and HSBC. The FCCBs are expected to be listed on Singapore Stock Exchange shortly.

In a board meeting held on January 10, the Board of Reliance Communications (RCOM) had authorised Mr Anil Ambani to take all necessary steps for this purpose, including raising long-term resources in the form of FCCBs and external commercial borrowings.

More Stories on : Overseas Borrowings | Telecommunications | Reliance Communications Ltd

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