Reliance Communications Ltd has set an indicative price range for the Singapore initial public offering of its undersea cable unit that could raise as much as USD 1 billion and help the parent reduce its debt load, IFR Asia reported on Monday.
Reliance Communications, controlled by billionaire Anil Ambani, is looking to raise funds to ease a debt load of USD 7 billion as of March. It has been unsuccessful in several past attempts to raise money by selling assets.
Global Telecommunications Infrastructure Trust (GTI Trust), which is structured as an business trust, plans to sell between 642.2 million and 757.6 million units at a price range of USD 1.09 to USD 1.32 a unit, IFR said. This translates to a distribution yield of 9.5% to 11.5% for 2013.
The yield range offered by Reliance Communications is higher than the 8.5% estimate for 2013 for Singapore-listed Hutchison Port Trust , which owns port assets in China.
The size of the base offering ranges from USD 700 million to