Reliance Power Limited (RPOWER) has announced that its Board has approved raising funds up to US$500 million (~INR 4,200 crore) through the issuance of Foreign Currency Convertible Bonds (FCCBs).
These FCCBs will have an ultra-low interest rate of 5% per annum and a tenure of 10 years. The private placement will be made to affiliates of Värde Investment Partners, a global alternative investment firm. The FCCBs will be convertible into equity shares of the company at a price of INR 51 per share.
Additionally, RPOWER’s Board has approved an Employee Stock Option Scheme (ESOS), allowing the issuance of up to 22 crore fully paid-up equity shares of INR 10 each, representing approximately 5% of the company’s fully diluted capital.
This ESOS is designed to align employee earnings potential with the company’s growth and performance. However, the implementation of the ESOS is subject to shareholder approval.
