RCom subsidiary raises about Rs 2,100 cr through global bonds

Company said it will use about 1500 crore proceeds to refinance the Standard Chartered Bank loan

Submarine cable arm of Reliance Communications, Global Cloud Xchange today announced raising about Rs 2,100 crore ($350 million) through a debt bond from overseas market mainly to refinance debt.

The company in a statement said that it has made "successful debut in the international capital markets, pricing $350 million in 5 non-call 2 years Senior Secured Regulation S/Rule 144A Fixed Rate Notes maturing in 2019."

The company said that it will use about Rs 1,500 crore ($250 million) of the proceeds to refinance the Standard Chartered Bank Loan Facility entered into by Reliance Globalcom BV, and the remaining for capital expenditure and general corporate purposes.

The deal received an overwhelming response from the market, and was significantly oversubscribed, GCX said.

By geography, 22% the new issue was allocated to US, 29% to Europe and 49% to Asia, it added.

On the type of investors, the issue saw 78% go to fund managers, 13% to hedge funds, 6% to private banks, and 3% to other investors, it added.

The Notes are expected to settle on August 1, 2014, the statement said, adding Deutsche Bank and Standard Chartered Bank acted as Joint Global Coordinators.