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Anil Ambani-led Reliance Communications (RCom) today signed final definitive agreements with three Chinese banks for refinancing its outstanding debts of approximately Rs 5,825 crore ($1.18 billion) that were raised through foreign currency convertible bonds (FCCBs).
“Reliance Communications Ltd (RCom) today signed final definitive agreements with ICBC, CDB and EXIM towards refinancing of its outstanding FCCBs,” the company said in a statement.
RCom said that with this refinancing from Industrial and Commercial Bank of China Ltd (ICBC), China Development Bank Corporation (CDB) and Export Import Bank of China (EXIM), the company will benefit from an extended loan maturity of seven years at an interest cost of about 5 per cent.
The agreement was signed in the presence of RCom Chairman, Mr Anil D. Ambani, in Beijing, the statement said.
The FCCBs of $1,182 million (approximately Rs 5,825 crore at the prevailing US dollar exchange rate of Rs 49.30) are due to be redeemed on March 1. This is the largest refinancing in the history of FCCBs by any Indian Corporate, the statement said.
Last week, RCom received RBI approval for the refinancing for the redemption of its outstanding FCCBs (Foreign Currency Convertible Bonds) worth Rs 5,825 crore.
Shares of the company closed at Rs 97.85, down by 8.72 per cent, on the BSE.
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