RCom pays $1,182 mn to redeem FCCBs

NEW DELHI, INDIA: Reliance Communications on Wednesday said it has paid $1,182 million (Rs.5,825 crore) for redemption of all the outstanding Foreign Currency Convertible Bonds (FCCBs).

"Reliance Communications has made payment of $1,182 million to make the largest ever redemption of all the outstanding Foreign Currency Convertible Bonds (FCCBs) from the $1,000 million issued in February 2007 and due on March 01, 2012," the company said in a statement.

"Redemption amount is inclusive of the premium of 27.69 percent," it added.

The company has made payment to the principal agent of FCCB, Deutsche Bank AG, London branch. The paid-up equity capital of the company will remain unchanged post redemption of these FCCBs.

Accordingly, Reliance Communications will not be required to allot 6,17,25,849 equity shares of Rs.5 each arising out of the potential conversion of the said FCCBs.

The firm had signed agreements with three Chinese banks to refinance its outstanding debts. The banks are Industrial and Commercial Bank of China Ltd. (ICBC), China Development Bank Corporation (CBD), and Export Import Bank of China (EIBC).