Rcom bond slips in overseas trading

Reliance communications Ltd bond that is listed overseas saw its prices slip in Hong Kong on Monday amidst worries about the company's dollar-denominated debt.

The telecom company's $300-million bond carries a coupon rate of 6.5 per cent slipped by 13.515 cents to trade at 87.615 cents in overseas trading, according to leading international news agency.

The dollar-denominated bond will be maturing in June 2020 and is rated B2 negative by Moody's Investor Service.

In a note that was released on May 11, Moody's mentioned that Reliance Communications remains exposed to currency mismatches. The note further stated that nearly 45-50 per cent of the company's debt is dollar denominated.

The company is currently under debt restructuring and has around $1-billion dollar-denominated debt which will mature in March 2018.