Global Cloud Xchange (GCX), the undersea cable unit of Reliance Communications (RCOM), is planning to raise over $250 million (Rs 15 billion) through an issue of bonds in the overseas market. This comes even as RCOM has been in talks with companies, including Hong Kong’s Citic Telecom, to sell stake in its GCX unit for around $ 1 billion to reduce its debt.
The company is presently in preliminary talks with investors to gauge their interest for the same. The final size of the offering and issue details are likely to be decided at a later stage. The proceeds of the sale will be used for payment of the $250 million of debt to its immediate parent company, Netherlands-based Reliance Globalcom BV, which is a wholly-owned subsidiary of RCOM. The remaining funds will be used as capital expenditure by RCOM.
At present, GCX owns five subsea cable systems with a total length of 68,698 kilometres with 46 landing stations across 27 countries.
