Reliance Power on Thursday said its board has approved raising $500 million (Rs 4,198 crore) through issue of Foreign currency convertible bonds (FCCBs). The FCCBs will be issued to affiliates of Värde Investment Partners, a global investment firm.
The FCCBs will be unsecured and will have a yearly interest rate of 5% with a tenure of 10 years. The FCCBs will be convertible into equity at Rs 51 per share.
The board also approved an Employees Stock Option Scheme for employees of the company and its subsidiaries. The scheme provides for grant of upto 220 million fully paid-up equity shares of Rs 10 each, of value of over approximately Rs 1,180 crore, representing nearly 5% of the company’s fully diluted capital.
Reliance Power’s subsidiary Rosa Power, recently prepaid Rs 850 crore of its debt to Singapore-based lender Varde Partners.
The board of Reliance Power recently approved raising of Rs 1,524.60 crore through preferential issue of 462 million equity shares or warrants convertible into equivalent number of shares at a price of Rs 33 per share/warrant to promoters and other investors.
Reliance Infrastructure, the promoter of the company will increase its equity stake by over Rs 600 crore. The other investors in the preferential issue are Authum Investment and Infrastructure and Sanatan Financial Advisory Services.
Reliance Infrastructure’s board also recently approved raising $ 350 million (Rs 2,930 crore) through ultra-low cost 10-year maturity FCCBs from Värde Investment Partners.
Reliance Power has total installed capacity of 5,340 MW, including the 4,000 MW ultra mega power project in Sasan, Madhya Pradesh.