Reliance Power board approves raising $500 million through FCCBs

The FCCBs are to be issued to affiliates of Värde Investment Partners, LP, a leading Global Alternative Investment Firm.

“Issue of up to $500 million ultra-low cost interest of 5% per annum, unsecured, 10-year long tenure Foreign Currency Convertible Bonds (FCCBs), on private placement basis to affiliates of Värde Investment Partners, LP,” the company said.

This is the second fundraising after Reliance Power’s board approved a fund raise of Rs 1,525 crore via preferential allotment mode on 23 September. The proceeds from the preferential issue will be utilized to expand business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction, and general corporate purposes.

The company said it has also formulated an employee stock option scheme (ESOS), which shall be administered by the nomination and remuneration committee, designated as the compensation committee (NRC) of the company and the options shall be granted to the eligible employees of the company, in terms of the ESOS.

“The ESOS shall be subject to requisite permission, sanction, and approval including approval by the shareholders of the company,” the filing added. Reliance Power’s scrip ended at Rs 53.65, up 4.99% on the BSE, Thursday. The announcement came post-market hours.