RCom redeems bonds worth $500 m

Our Bureau Mumbai | Updated on May 10, 2011 Published on May 10, 2011

Anil Ambani-controlled Reliance Communications said on Tuesday it has redeemed all the outstanding foreign currency convertible bonds, (FCCBs) from the $500 million (Rs 2,250 crore) issue in May 2006.

The bonds have been redeemed at a premium of 25.84 per cent, RCom said, without disclosing the total amount paid. The total payout for the pending FCCBs would have been around $373 million, analysts estimate.

Post the redemption of the FCCBs, the equity capital of the company stands unchanged, according to a press statement from the company.

Accordingly, Reliance Communications is not required to allot 2.74 crore shares of Rs 5 each arising out of the potential conversion of FCCBs, it said The company made the payment on the due date of May 9.

RCom has another outstanding FCCB of $925 million which expires in February 2012. As of December 31, RCom had a net debt of over Rs 30,000 crore

The company scrip was up 1.29 per cent to close at Rs 90.6 on the Bombay Stock Exchange today.

Published on May 10, 2011
This article is closed for comments.
Please Email the Editor