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Reliance Energy raises $178 m via bonds issue

Our Bureau

Mumbai , March 2

POWER generation and distribution company Reliance Energy Ltd, formerly BSES, has raised $178 million (Rs 805 crore) through foreign currency convertible bonds (FCCB) on Monday.

The bonds have a maturity of five years and will have zero coupon, a company official said. This is the largest FCCB placed by an Indian company, he said. The company received an overwhelming response of close to $3.3 billion within an hour after lead manager Deustche Bank placed the deal for over 200 global institutional investors, he added.

Investors can convert the bonds into global depository receipts at Rs 1,007 a share. Conversion price is at a 30 per cent premium to Reliance Energy's share price of Rs 774.55 per share on the BSE on Monday.

Reliance Energy's FCCB issue follows a preferential offer last week to Reliance Industries Ltd for Rs 1,400 crore. The offer was made at Rs 640 a share. The company also plans to raise Rs 100 crore through equity shares or an international convertible bond.

Earlier, on February 22, Reliance Energy had approved a preferential offer of equity shares to the Reliance group and major institutional shareholders with the aim of generating resources for its growth plans. It had planned the preferential offer subject to the necessary approval at Rs 640 per share.

The Reliance group had said it plans to subscribe to over two crore equity shares of Reliance Energy aggregating Rs 1,400 crore, while major institutions such as Life Insurance Corporation and General Insurance Corporation had in-principle agreed to subscribe to nearly one crore shares aggregating Rs 600 crore.

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