Reliance Power Ltd. will raise up to $500 million or Rs 4,200 crore, via bond sale to affiliates of US investment firm Värde Partners, following board approval on Thursday.
The Foreign Currency Convertible Bonds or FCCBs, will be unsecured and will have an ultra-low interest rate of 5% per annum with a long tenure of 10 years. Each bond is valued at $1,000,000 and Reliance Power will issue 500 of those to affiliates of Värde Investment Partners, LP, according to an exchange filing.
The bonds will be convertible into approximately 82.30 crore equity shares of Rs 10 of Reliance Power at the conversion price of Rs 51 apiece.
The FCCBs will be allotted within 30 days from the issue closing date.
Värde Partners is a Minnesota-based global alternative investment firm specialising in credit and credit-related assets.
Reliance Power also approved an Employees Stock Option Scheme (ESOS) for its employees and of its subsidiaries. ESOS provides for the grant of up to 22,00,00,000 fully paid-up equity shares of Rs 10 each, of a value of over Rs 1,180 crore, representing approximately 5% of the company’s fully diluted capital.
The ESOS will unlock the employee earning potential, in alignment with the company’s performance and growth, and shall be in accordance with the applicable SEBI regulations and subject to the approval of shareholders, the company said.
Reliance Power, a part of the Anil Ambani-led Reliance Group, is a power generation company with a total installed capacity of 5,340 MW, including the 4,000 MW project in Sasan, Madhya Pradesh.
Shares of Reliance Power closed 5% higher at Rs 53.64 apiece ahead of the announcement, compared to a 2.12% decline in the benchmark Nifty. The stock has risen 130% on a year-to-date basis and 178% over the last 12 months.
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