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Global Cloud Xchange, the submarine cable entity of Reliance Communications (RCom), on Friday, announced raising $350 million (about Rs 2,100 crore) through a debt bond from overseas market to refinance debt.
In a statement, RCom said it has made "successful debut in the international capital markets, pricing $350 million in five non-call two years Senior Secured Regulation S/Rule 144A Fixed Rate Notes maturing in 2019."
RCom also said that it would use $250 million (about Rs 1,500 crore) 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, the compant said in a statement. About 22% of the new issue was allocated to US, 29% to Europe and 49% to Asia, it noted.
According to the company statement, the issue saw 78% go to fund managers, 13% to hedge funds, 6% to private banks, and three% to other investors.
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.
