The Reliance Communication after getting failed in selling their bonds, Mr. Anil Ambani’s telecom company has decided to sell it bonds to the international network Flag Telecom. It has planned to raise about $500 million by selling its bonds in abroad to the European investors.
The Reliance Communication (RCOM) has given the charge to initiate the activity by appointing Deutsche Bank’s investment banking branch. They have to put their effort to increase the funds.
If the deal would be done successfully then the money would be used to settle debts, which includes $200 million of the transformable bonds. The RECOM has acquired over $900 million of the transformable bonds of the foreign currency. At present the RECOM is facing the outstanding debt of Rs.700 crore.
The debts have more increased recently due to the continuous failure of the attempts made to gather the funds for their company. With the increase of mobile markets the RECOM profits has being turned down.
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