Rcom rings in a bond issue

Reliance Communication (RCom) is seeing some quiet action today, the stock at one time during the day, rose almost 3% at Rs.72 levels and is now some 1% up at Rs.71 levels. Volumes are muted.

This stock is up even in this low market on account of a small but of good news. It is reported that the company has appointed DBS and Standard Chartered as joint global co-ordinators for an offering of senior secured US dollar bonds.

This is good news because earlier too, around December, it had planned a bond issue but withdrew it. That time, the bonds were unrated and this time around, it has two ratings – Fitch gave it a BB- and Moody’s gave it a Ba3, both indicating stable outlook.

So this is a positive move to that extent. It is hoping to kick off the investor meets from Monday in Asia and Europe.