RCom signs final definitive agreements with ICBC, CDB and EXIM for refinancing FCCBs

Telecom giant Reliance Communications (RCom) today said that it has signed the final definitive agreements with ICBC, CDB and EXIM for refinancing its outstanding Foreign Currency Convertible Bonds (FCCBs).

"Reliance Communications Limited (RCom) today signed final definitive agreements with ICBC, CDB and EXIM towards the refinancing of its outstanding FCCBs," Anil Ambani-led RCom said in a filing to Bombay Stock Exchange.

FCCBs are bonds issued in foreign currency instead of domestic currency. Issuance of such bonds is a method by which a company can raise funds in some other foreign currency. They are like regular coupons and have all features of convertible bond.

Currently, RCom has outstanding FCCBs worth Rs 5,825 crore. The same would be redeemed on the due date of March 1, 2012. Additionally, the company would also benefit from extended loan maturity of 7 years and attractive cost of about 5 per cent, added the filing.

Despite the positive development, shares of the company witnessed hectic selling and plunged by over 12 per cent to touch an intraday low of Rs 94.80 on Bombay Stock Exchange.