The dollar denominated bonds of Reliance Communications (RCOM) were called off on December 3, 2014 as they failed to generate positive response among US-based investors. This occurred largely due to poor market conditions and issues related to pricing of the issue.
RCOM was planning to raise $225 million from this bond issue. The operator had launched a five-year bond issue on December 1, 2014, with an initial price guidance of about 6.5 per cent.
The deal did not receive a good response and the company even considered lowering the deal size. However, the investors did not accept tighter pricing on reduced bond sizes as well.
The company was planning to use the proceeds of the deal to repay its existing foreign currency debt, which stands around $255 million.
