Reliance Comm raises record sum in FCCB for capacity expansion

New Delhi, Feb 5 (UNI) Reliance Communications has raised a record one billion US dollars (over Rs 4,400 crore) through Foreign Currency Convertible Bonds (FCCB), bettering its record of 500 million US dollars last March.

The amount -- which is the double of any FCCB from India-- saw the conversion of FCCBs at price of Rs 661, representing a 30 per cent premium over the prevailing market price, Reliance Communications sources today said.

The proceeds raised will be utilised for capex of 2.5 billion US dollars, they said, adding that the coverage expansion will enable further growth in the company's market share of 20 per cent, as it will accelerate coverage of between 15,000 to 20,000 new towns and cities The country is witnessing growth of over six million new telephone subscribers every month, they noted.

The scheme will entail no cash outgo during the five year maturity period of the bond, which is at zero interest, was raised at rates, well below LIBOR cost, across Asia, Europe and US, the sources said. The deal witnessed a huge demand, being heavily over-subscribed by three to four times, was concluded within two hours of launch at 1800 hrs, they added.

JP Morgan and HSBC were the bankers for the deal.

UNI