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REL decides to raise funds through FCCBs

REL decides to raise funds through FCCBs
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First Published: Tue, Dec 04 2007. 05 31 PM IST
Updated: Tue, Dec 04 2007. 05 31 PM IST
PTI
Mumbai: Reliance Energy Limited, a Anil Ambani group firm, has said its Board of Directors will meet next week to consider raising funds through a convertible bond issue priced higher than the prevailing market price.
Informing the BSE, REL said: “The Board will meet on 12 December to discuss an enabling resolution for issuing Foreign Currency Convertible Bonds (FCCBs) at a premium to the current market price in appropriate tranches and at appropriate time to mobilise resources”.
It has said that it had earlier issued zero coupon FCCBs of $178 million (Rs701 crore) convertible into equity shares of Rs10 each at a price of Rs1,006.92. While bonds of $147.497 million have already been converted into shares, the company has issued notices to bondholders to convert the remaining part of $30.561 million into equity shares.
The conversion falls due on 4 January next year, at the end of which the entire outstanding FCCBs will stand extinguished.
REL’s plan to raise funds through FCCBs comes within days of its Board deciding to infuse up to Rs8,000 crore in the company through equity or equity-related instruments.
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First Published: Tue, Dec 04 2007. 05 31 PM IST