Reliance Communications has redeemed all the outstanding Foreign Currency Convertible Bonds (FCCBs) from the US$ 500 million (Rs 2,250 crore) issue in May 2006.
Redemption has been made at a premium of 25.84 percent. The company made the payment on the due date of May 9th 2011. The equity capital of the company stands unchanged, post the redemption of the FCCBs. Accordingly, Reliance Communications is not required to allot 2,74,13,085 equity shares of Rs 5 each arising out of the potential conversion of said FCCBs.
On March 22, 2006, Reliance Communications Ventures (RCoVL) had announced the completion of an international offering of zero coupon Foreign Currency Convertible Bonds (FCCBs) aggregating US$ 500 million, carrying a conversion price of Rs 480.68 per share, representing a premium of 50 percent to the closing price of the RCoVL share on 21st March 2006. Deutsche bank was the sole bookrunner for the transaction.
By TelecomLead.com Team