Reliance secures refinancing deal from 3 Chinese banks

Indian operator Reliance Communications (RCom) has signed a definitive loan agreement with three Chinese banks for the refinancing of its outstanding foreign currency convertible bonds (FCCBs). The agreement was signed with Industrial and Commercial Bank of China (ICBC), the China Development Bank (CDB), and Export Import Bank of China ( EXIM). The FCCBs of USD 1.18 billion will be redeemed on 1 March, the due date. With this refinancing, Reliance will benefit from extended loan maturity of seven years at an interest cost of about 5 percent.