Mumbai: Anil Ambani-led Reliance Communications on Wednesday said it would invite tender from its existing bondholders for buying back foreign currency convertible bonds (FCCBs) at a discount.
The company intends to buy back the outstanding FCCBs by way of an invitation to the bondholders to tender their bonds for repurchase, Reliance Communications said in a filing to the Bombay Stock Exchange (BSE).
“The invitation to tender will commence on 15 April and will expire on 17 April 2009,” it further said. In the past, the telecom operator had issued $1 billion FCCBs (current outstanding $955 million) due in 2012.
“The buyback of FCCBs shall result in gains to the company to the extent of the discount on the repurchase of FCCBs,” the ADAG firm said, and further added that “debt on the balance of the company will be reduced to the extent of the FCCBs bought back.”
Last year, in December the Reserve Bank of India had allowed companies to buyback FCCBs if they are trading at a discount of 25% of its book value.
Shares of Reliance Communications were trading at Rs226.75, up 3.44% in the afternoon trade on the BSE.