Indian mobile operator Reliance Communications (RCom) has reportedly abandoned plans to offer a US dollar-denominated bond following a poor response from US-based investors due to poor market conditions and pricing issues.
RCom announced last week that…
Indian mobile operator Reliance Communications (RCom) has reportedly abandoned plans to offer a US dollar-denominated bond following a poor response from US-based investors due to poor market conditions and pricing issues.
RCom announced last week that it was considering issuing the senior secured notes to refinance US$255m of overseas loans.
The operator launched the offering of five-year bonds on Monday with an initial price guidance of 6.5% but they struggled to gain traction, the Business Standard reported. RCom, India’s fourth-largest mobile operator, reportedly considered reducing the size of the offering, but investors would not accept the tighter pricing.
Another local report cited a person familiar with the development as saying the offering has been deferred.
Deutsche Bank and Standard Chartered reportedly advised RCom on the transaction.
Reports suggest that RCom’s debut attempt to tap the overseas bond market was aimed at cashing in on the surge in demand for Indian corporate bonds this year.
RCom was not immediately available for comment.
