The board of infrastructure company Reliance Infrastructure has authorised the issuance of up to $400 million, 5 per cent unsecured Foreign Currency Convertible Bonds (FCCBs) on a private placement basis.

The FCCBs shall be convertible into equity shares of ₹10 each of the company as per the FCCBs term, at ₹123 (including a premium of ₹113) per equity share.

The conversion price is 5.60 per cent more than the floor price of ₹116.48, calculated as an average of the weekly high and low closing prices during the two weeks preceding August 5, 2022. The tenure of the bonds will be ten years.

Each FCCB of $1,000,000 is equivalent to ₹7.94 crore, the company informed.

This is the second time this year that the board of Reliance Infrastructure gave their nod to raise funds through FCCBs. In June, the company had intimated that it had received the board’s approval for raising $500 million.