Reliance Communications on Monday said it has tied up refinancing for outstanding FCCBs (Foreign Currency Convertible Bonds) worth Rs. 6,125 crore.
“Reliance Communications (RCOM) has tied up refinancing for maturity value of outstanding FCCBs of USD 1,182 million (Rs 6,125 crore),” the company said in a regulatory filing to the BSE.
Following the announcement, shares of the company jumped 5.61 per cent to an early high of Rs. 91.30 on the BSE.
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The refinancing is being funded by Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB), Export Import Bank of China (EXIM), and other banks, it said.
The company also said it will benefit from extended loan maturity of seven years and attractive interest cost of about 5 per cent.
The loan proceeds would be used for refinancing the entire redemption amount of FCCB which are due for redemption on March 1, 2012.
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FCCBs are bonds that are issued in currencies different from the issuing company’s domestic currency.