Date:23/03/2006 URL: http://www.thehindubusinessline.com/2006/03/23/stories/2006032303340300.htm

Back RCoVL FCCB conversion at Rs 480.68 per share

Our Bureau

Mumbai , March 22

The $500-million (Rs 2,250 crore) foreign currency convertible bonds (FCCBs) issue of Reliance Communications Ventures Ltd. (RCoVL) has been completed; the bonds carry a conversion price of Rs 480.68 per share, representing a premium of 50 per cent to the closing price of the scrip on March 21.

The zero-coupon bonds have a maturity period of five years and one day, and carry a Yield-to-Maturity of 4.65 per cent per annum, reflecting the "extremely competitive pricing of LIBOR minus approximately 50 basis points," said a statement from the company.

The FCCBs are expected to be listed on the Singapore Stock Exchange. In the event that the FCCBs are fully converted into equity, the company's share capital would increase by approximately 4.62 crore equity shares of Rs 5 each, which would represent barely around 2 per cent of fully diluted equity share capital, post the recently announced reorganisation of the RCoVL group, said the statement.