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Reliance Infrastructure has got the approval of its board to raise $100 million through unsecured foreign currency convertible bonds (FCCBs), the company told the stock exchanges on Saturday. The company also appointed Sandeep Khosla as its new Chief Financial Officer (CFO), after Pinkesh Shah vacated the post. 

“The Board of Directors of the Company has authorised the issue of up to $100 million unsecured foreign currency convertible bonds maturing in 2031 with a coupon rate of 4.5 per cent on private placement basis. The FCCBs shall be convertible into equity shares of 10 each of the company in accordance with the terms of the FCCBs, at a price of 111 (including a premium of 101) per equity share," Reliance Infrastructure said in its filing.

The Anil Ambani-led company said it will issue 100 FCCBs of $1 million each, each aggregating $100 million. In rupee terms, each FCCB will be equivalent to 7.37 crore at a conversion rate of $1 being equal to 73.70, putting the value of the entire issue at 737 crore. These FCCBs will be unlisted, it further added.

The FCCBs can be converted into approximately 6,63,96,396 equity shares of 10 each of the company at the conversion price of 111 per equity share, including a premium of 101. This conversion price is 19.70 per cent more than the floor price prescribed by law as on the relevant date.

The FCCBs will be allotted within 30 days from the issue closing date, and will have a tenure of 10 years and 1 day from the date of allotment. They will carry a coupon of 4.50 per cent per annum.

At the board meeting today, the company also finalised the appointment of Sandeep Khosla as its Chief Financial Officer (CFO). The change in office came after Pinkesh Shah vacated the post upon accepting the assignment of President – Bangladesh Project in Reliance Power Limited.

Shah's cessation will come into effect on September 30, 2021 and Khosla will take over on October 1, 2021.

Khosla is a Chartered Accountant and a Chartered Management Accountant with over 20 years of experience in the field of accounts and finance, financial strategy, financial control, budgeting and analysis, treasury and banking, tax planning, cost control, debt restructuring, internal financial controls, etc.

He has been associated with the Group since February 2018. He is currently serving as the CFO of Reliance Power Limited. Prior to this, he has been the CFO of Reliance Commercial Finance Limited.

Before this, Khosla has amassed over 17 years of experience in the finance sector during his tenure with various organizations including Blue Star Limited, Bajaj Finance Limited, Citicorp Services (India) Limited and Tata Capital Limited.

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