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Reliance Infrastructure has received approval from its board to raise $100 million through unsecured foreign currency convertible bonds (FCCBs), the company said to stock exchanges on Saturday. The company also appointed Sandeep Khosla as its new Chief Financial Officer (CFO), after Pinkesh Shah vacated the post.
“The company’s board of directors has approved the issuance of up to $100 million of unsecured foreign currency convertible bonds due 2031 with a coupon rate of 4.5 percent on a private placement basis.” FCCBs will convert into equity shares ₹10 of each company as per FCCB conditions, at a cost of ₹111 (including the premium of ₹101) per share,” Reliance Infrastructure said in its filing.
The Anil Ambani-led company said it will issue 100 FCCBs of $1 million, each worth $100 million. In rupee terms, each FCCB will be equivalent ₹$7.37 million at a conversion rate of $1 which is equal ₹73.70, putting the value of the entire show at ₹737 crowns. These FCCBs will not be listed, it added.
FCCBs are convertible into approximately 6,63,96,396 shares ₹10 of each company at a conversion price of ₹111 per share, including a premium of ₹101. This conversion price is 19.70 percent higher than the minimum price prescribed by law on the relevant date.
The FCCBs will be granted within 30 days from the closing date of the issue and will have a term of 10 years and 1 day from the date of grant. They will carry a coupon of 4.50 percent per annum.
In today’s board meeting, the company also finalized the appointment of Sandeep Khosla as its Chief Financial Officer (CFO). The reshuffle comes after Pinkesh Shah vacated the post after accepting the appointment of Chairman – Bangladesh Project at Reliance Power Limited.
Shah’s resignation will take effect on September 30, 2021, and Khosla will take over on October 1, 2021.
Khosla is a chartered accountant and management accountant with over 20 years of experience in accounts 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 working as the Chief Financial Officer of Reliance Power Limited. Prior to that, he was the CFO of Reliance Commercial Finance Limited.
Prior to that, Khosla gained over 17 years of experience in the financial sector 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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