Reliance Communications has received approval from Reserve Bank of India for refinancing the redemption of its outstanding foreign currency convertible bonds (FCCBs). The bonds worth Rs 58.25 billion are due for redemption on March 1, 2012.
The refinancing is being provided by Industrial and Commercial Bank of China (ICBC), China Development Bank (CDB) and Export Import Bank of China (EXIM). Under the deal signed with the Chinese banks RCOM will benefit from extended loan maturity of seven years and interest cost of about 5 per cent.
FCCBs are bonds that are issued in currencies different from the issuing company?s domestic currency.
