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Reliance Communications has tied up with a clutch of banks for a loan to redeem its outstanding foreign currency convertible bonds worth Rs 6,125 crore ($1.18 billion).
The company's stock rose 2.8 per cent on this news, closing at Rs 88.85 on the BSE, gaining almost 5 per cent intra-day.
Industrial and Commercial Bank of China, China Development Bank Corporation, Export Import Bank of China and other banks are funding the refinance, said the company.
RCom said it will benefit from the extended loan maturity of seven years, at an interest cost of about 5 per cent. It said this was the largest refinancing in the history of FCCBs by any Indian corporation.
The FCCB redemption is due on March 1, 2012.
The company had issued the bonds five year ago. The conversion price is above Rs 650 a share, according to market experts.
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