Reliance Infra Set to Raise ₹2,930 Crore via USD Bonds with 5% Ultra-Low Interest from VFSI Holdings

Reliance Infrastructure announced on Tuesday that its board has approved a plan to raise Rs 2,930 crore by issuing unsecured foreign currency convertible bonds (FCCBs) to VFSI Holdings Pte Limited. In a regulatory filing, the company stated that these FCCBs will have an ultra-low coupon rate of 5% per annum and a long maturity period of 10 years.

Details of the Bond Issuance

The board of Reliance Infrastructure has given the green light to raise funds of up to USD 350 million (approximately Rs 2,930 crore) from VFSI Holdings Pte Limited. VFSI Holdings is an affiliate of Varde Investment Partners, LP, a leading global alternative investment firm.

Key Features of the FCCBs

The foreign currency convertible bonds issued by Reliance Infrastructure will be unsecured, meaning they will not be backed by collateral. These bonds come with an ultra-low cost coupon rate of 5% per year, which is lower than the standard interest rates on bonds. The bonds also have a long maturity of 10 years, giving the company ample time to repay the debt.

Employee Stock Option Scheme (ESOS) Approved

In addition to the bond issuance, the Reliance Infrastructure board approved the launch of an Employee Stock Option Scheme (ESOS) for its employees. The ESOS will allow employees to receive up to 2.60 crore equity shares, valued at over Rs 850 crore. This represents 5% of the company’s fully diluted capital.

Alignment of Employee Growth with Company Performance

The purpose of the ESOS is to unlock the earning potential of employees, tying their rewards to the company’s performance and growth. This is expected to motivate employees and ensure that their interests align with those of the company.

Reliance Infrastructure’s Operations in the Energy Sector

Reliance Infrastructure Limited is a key player in the energy sector. The company manages power distribution in Delhi and is involved in energy production. The new funding will help support its ongoing projects and growth initiatives within this sector.