RCom Subsidiary Global Cloud Xchange Raises $350 Million

Submarine cable arm of Reliance Communications, Global Cloud Xchange on Friday announced the raising of about Rs. 2,100 crore ($350 million) through a debt bond

from overseas market mainly to refinance debt.

The company in a statement said that it has made "successful debut in the international capital markets, pricing $350 million in 5 non-call 2 years Senior Secured Regulation S/Rule 144A Fixed Rate Notes maturing in 2019."

The company said that it will use about Rs 1,500 crore ($250 million) of the proceeds to refinance the Standard Chartered Bank Loan Facility entered into by Reliance Globalcom BV, and the remaining for capital expenditure and general corporate purposes.

The deal received an overwhelming response from the market, and was significantly oversubscribed, GCX said. By geography, 22 percent the new issue was allocated to US, 29 percent to Europe and 49 percent to Asia, it added.

(Also See: Reliance Communication to Cut Headcount; Shift 5,500 Employees)

On the type of investors, the issue saw 78 percent go to fund managers, 13 percent to hedge funds, 6 percent to private banks, and 3 percent to other investors, it added.

The Notes are expected to settle on August 1, 2014, the statement said, adding Deutsche Bank and Standard Chartered Bank acted as Joint Global Coordinators.

Global Cloud Xchange was last in the news in June when it announced plans to lay about 5,000 kilometres of undersea cable between Mumbai and Singapore that will cater to increasing high speed Internet requirements in India.

"With Singapore as a regional hub and gateway for multinational companies doing business across India and emerging markets, the ICU (India Cloud Xchange) cable will complement GCX global network infrastructure for direct connectivity to major centres in Asia, Middle East, North America and Europe," Global Cloud Xchange (GCX) Chief Executive Officer Bill Barney had then said in a statement.

Edited by NDTV staff from original copy by PTI