RBI to continue buyback of foreign convertible bonds

Mumbai: 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.[caption id=“attachment_369107” align=“alignleft” width=“380”]  The RBI logo. Reuters[/caption]

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.

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