Anil Ambani-led Reliance Communications (RCom) today signed final definitive agreements with three Chinese banks for refinancing its outstanding debts of about Rs 5,825 crore ($1.18 billion) that were raised through foreign currency convertible bonds (FCCBs).
"RCom today signed final definitive agreements with Industrial and Commercial Bank of China Ltd (ICBC), China Development Bank Corporation (CDB) and Export Import Bank of China (EXIM) towards the refinancing of its outstanding FCCBs," the company said in a statement.
RCom said that with this refinancing, the company will benefit from extended loan maturity of seven years at interest cost of about 5%.
The agreement was signed in presence of RCom Chairman Anil Ambani in Beijing, the statement said.
The FCCBs of $1,182 million (about Rs 5,825 crore at the prevailing dollar exchange rate of Rs 49.30) are due to be redeemed on March 1.
This is the largest refinancing in the history of FCCBs by any Indian corporate, RCom statement said.
Last week, RCom received the RBI approval for the refinancing for redemption of its outstanding FCCBs worth Rs 5,825 crore.
Shares of the company closed at Rs 97.85, down by 8.72%, on the BSE.
