Reliance Power's Ambitious USD 500 Million Bond Initiative

Reliance Power, part of the Reliance Group, plans to raise USD 500 million through issuance of Foreign Currency Convertible Bonds (FCCBs) with a tenure of 10 years at a low interest rate. Additionally, the firm introduces an Employee Stock Option Scheme for its employees, pending shareholder and regulatory approval.

On Thursday, the board of directors at Reliance Power gave the green light for raising up to USD 500 million through bond issuance. This financial move is aimed at strengthening the company's fiscal standing.

The proposed Foreign Currency Convertible Bonds (FCCBs) will be offered to affiliates of Varde Investment Partners, a prominent global alternative investment firm. The bonds, convertible into equity shares at Rs 51 per share, have a low annual interest rate of 5% with a 10-year tenure.

Furthermore, Reliance Power has outlined an Employee Stock Option Scheme (ESOS) to grant up to 22 crore equity shares, valued over Rs 1,180 crore, to its employees. This initiative aligns employee rewards with the firm's performance and growth, pending necessary shareholder and regulatory approvals.

(With inputs from agencies.)