Reliance Infra to raise 737 cr via convertible bonds in foreign currencies

Reliance Infrastructure has obtained approval from its board of directors to raise $ 100 million through unsecured convertible foreign currency bonds (FCCBs), the company announced on the stock exchanges on Saturday. The company also appointed Sandeep Khosla as the new chief financial officer (CFO), after Pinkesh Shah stepped down.

“The board of directors of the company has authorized the issuance of up to $ 100 million unsecured foreign currency convertible bonds due 2031 with a coupon rate of 4.5 percent based on ‘a private placement. The FCCB will be convertible into capital shares of ??10 each of the company in accordance with the terms of the FCCB, at a price of ??111 (including a bonus of ??101) per share, ”Reliance Infrastructure said in its filing.

The company headed by Anil Ambani said it would issue 100 FCCBs of $ 1 million each, totaling $ 100 million each. In terms of rupees, each FCCB will be equivalent to ??7.37 crore at a conversion rate of $ 1 equal to ??73.70, putting the value of the entire issue at ??737 crores. These FCCBs will not be listed, he added.

FCCB can be converted into approximately 6 63 96 396 shares of ??10 each of the company at the conversion price of ??111 per share, including a premium of ??101. This conversion price is 19.70% higher than the floor price prescribed by law on the date concerned.

The FCCBs will be allocated within 30 days of the closing date of the issue and will have a term of 10 years and 1 day from the date of allocation. They will carry a coupon of 4.50 percent per year.

At today’s board meeting, the company also finalized the appointment of Sandeep Khosla as Chief Financial Officer (CFO). The job change came after Pinkesh Shah left the job after accepting the assignment of President – Bangladesh Project at Reliance Power Limited.

Shah’s cessation will take effect on September 30, 2021, and Khosla will take over on October 1, 2021.

Khosla is a Chartered Accountant and Chartered Management Accountant with over 20 years of experience in accounting and finance, financial strategy, financial control, budgeting and analysis, treasury and banking, tax planning, cost control, debt restructuring, internal financial controls, etc.

He has been associated with the Group since February 2018. He is currently CFO of Reliance Power Limited. Previously, he was CFO of Reliance Commercial Finance Limited.

Prior to that, Khosla accumulated over 17 years of experience in the financial industry during his tenure with various organizations including Blue Star Limited, Bajaj Finance Limited, Citicorp Services (India) Limited and Tata Capital Limited.

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About Ruben V. Albin

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