RBI to continue buyback of foreign convertible bonds

The Reserve Bank of India would continue to buy back foreign currency convertible bonds (FCCBs) issued by Indian companies under the approval route, it said today.

The central bank will consider proposals from Indian companies for buyback of FCCBs, if the buyback value is at a minimum discount of five percent on the accreted value, it said in a statement.

The buyback scheme would lapse after 31 March, the RBI said.

Indian companies face convertible bond redemptions of nearly $5.5 billion this year. A sharp economic and corporate growth slowdown, weakening of the rupee that hit record lows last month and a plunge in stock values have made the debt obligation very costly for some companies.

(curtsey : first post)

Rupesh Yatesh Dalal
Head Research Department

Website : www.marketcalls.net
Facebook : www.facebook.com/marketcalls.net
Twitter : @marketcallsnet
Yahoo Messenger : rupeshydalal@yahoo.com
Email : info@marketcalls.net


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: