Reliance Communications (RCom) has signed final definitive agreements with ICBC, CDB and EXIM towards the refinancing of its outstanding Foreign Currency Convertible Bonds (FCCBs), thereby making it the largest refinancing in the history of FCCBs by Indian corporate.
The FCCBs of $1182 million (approximately of Rs 5825 crore at the prevailing $ exchange rate of Rs 49.30) will be redeemed on March 1, 2012, the due date. The company is expected to benefit from extended loan maturity of 7 years and attractive interest cost of about 5%.
RCom is the flagship company of the Reliance group. The group currently has a net worth in excess of Rs 89,000 crore, cash flows of Rs 10,900 crore, net profit of Rs 3600 crore. The company is India’s foremost and truly integrated telecommunication service provider.
