Reliance Infrastructure To Raise $350 Mn Via FCCBs

Reliance Infrastructure has revealed its decision to raise up to USD 350 million (Rs 2,930 crore) through unsecured Foreign Currency Convertible Bonds (FCCBs), with an ultra-low coupon rate of 5 per cent per annum and a maturity period of 10 years. These bonds will be issued to VFSI Holdings Pte., an affiliate of Värde Investment Partners, LP, a leading global alternative investment firm. The FCCBs will be convertible into equity shares at a price of Rs 330 per share.

Additionally, Reliance Infrastructure's Board of Directors has approved an Employee Stock Option Scheme (ESOS) for all its employees and those of its subsidiaries. The ESOS will provide for the grant of up to 2.6 crore fully paid-up equity shares, representing approximately 5 per cent of the company’s fully diluted capital. This initiative is aimed at aligning employee rewards with the company’s performance and growth, thereby unlocking the earning potential of the employees.

Commenting on the approvals, the company emphasised that the FCCB issuance and ESOS will be subject to necessary regulatory permissions and shareholder approval by Sebi regulations. Reliance Infrastructure operates in key sectors such as energy distribution in Delhi, defence manufacturing, and infrastructure development projects like the Mumbai Metro and various airport ventures.

This move is set to strengthen the company's financial flexibility and promote employee engagement as it continues to play a pivotal role in India’s infrastructure and energy sectors.