Reliance Power board approves raising $500 million through bonds

The board of Reliance Power on Thursday (October 3) approved raising $500 million through issuance bonds, according to a company's statement. Reliance Power, a part of the Reliance Group, led by top businessman Anil Ambani. 

Simultaneously, the board also approved an Employee Stock Option Scheme (ESOS) for all employees of the company, the company said in a regulatory filing.

"Reliance Power Board approves raising USD 500 million (INR 4,200 crore) through ultra-low interest of 5 per annum pa, 10 years long tenured Unsecured Foreign Currency Convertible Bonds (FCCBs)," it said.

According to the statement, FCCBs will be issued to affiliates of Värde Investment Partners, LP a leading global alternative investment firm.

The FCCBs will be convertible into equity shares at Rs 51 per share.

The board further approved ESOS for all employees to provide grants of up to 22 crore equity shares of the value of over Rs 1,180 crore (Rs 10 each) representing 5 per cent of fully-diluted capital of the company.

The ESOS will unlock the employee earning potential, in alignment to the company's performance and growth. This will be subject to shareholders' and other regulatory approvals.

Shares of Reliance Power closed five per cent higher today at Rs 53.7 each on BSE.

Also Read: Reliance Infra, Reliance Power make investors wealthier by 56% in 2 weeks