Reliance Communications, India’s second-largest mobile phone service provider, said that it had offered to buy back outstanding zero coupon foreign currency convertible bonds due 2012. The company had issued worth $1 billion bonds and about $950 million are outstanding.
"The amount of bonds repurchased will be determined by the company at its discretion," said the company in a note to Bombay Stock Exchange released on Wednesday. The company has issued tender offer to all its bond holders for buying back the bonds for cash at a discount. The bonds are listed on the Singapore Exchange Securities Trading.
The company plans to buy back the bonds from its internal accruals and the foreign exchange proceeds it has. Debt of the company will be reduced from its balance sheet to the extent of the FCCB bought back.
