Our Bureau

Mumbai, May 10

The board of directors of Reliance Natural Resources Ltd on Wednesday approved the issuance of zero coupon foreign currency convertible bonds (FCCBs) in the international markets up to $300 million.

The issue will consist of three lakh FCCBs of $1,000 each with a tenor of five years.

The conversion price is Rs 37 a share, representing a premium of 20 per cent to the closing price of the shares on May 9.

In the event of the FCCBs being fully converted into equity, the equity share capital of the company would increase by about 36.5-crore equity shares of Rs 5 each.

Reliance Natural also said that it has entered into a subscription agreement with the sole arranger, Barclays Capital.

The company's scrip closed at Rs 31.60 on the BSE.

(This article was published in the Business Line print edition dated May 11, 2006)
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