Flag Telecom, a telco services provider and unit of Indian mobile operator Reliance Communications, could raise as much as US$500m by selling bonds to European investors, reported the Economic Times.
Deutsche Bank has reportedly been hired for the sale….
Flag Telecom, a telco services provider and unit of Indian mobile operator Reliance Communications, could raise as much as US$500m by selling bonds to European investors, reported the Economic Times.
Deutsche Bank has reportedly been hired for the sale. The proceeds will be used to meet debt obligations, including US$200m worth of convertible bonds held by foreign investors and due in May 2011, the newspaper stated. The company reportedly has another US$900m of foreign currency convertible bonds due February 2012.
In a separate report, R-Com said it was still considering selling a stake in its tower business, Reliance Infratel. But it added that it is currently generating enough cash for its capital expenditure, reported the Business Standard.
Last September, Indian group GTL Infrastructure stated that its US$11bn merger with Infratel had been scrapped. While no reasons were given for the deal collapse, one analyst suspected there had been valuation differences between the two companies.
For Q2 2010 (ended 30 September), R-Com reported a 39.8% fall in net income to Rs4.46bn (US$100m), on revenue which fell 10.3% to Rs51.18bn. It also saw its EBITDA margin fall to 32.4% from 35.4% year-on-year, although it did improve on the 31.9% achieved in the first quarter.
R-Com could not be reached for comment.
