Global Cloud Xchange, the submarine cable subsidiary of Reliance Communications (RCOM), has raised $350 million through sale of bonds in the international market. The bonds were priced at 100 per cent with a coupon and yield rate of 7 per cent.

The deal received a positive response from the market and was significantly oversubscribed. About 22 per cent of the new issues were allocated to the investors in the US, while 29 per cent were allocated to those in Europe and 49 per cent to those in Asia. In terms of investor type, the issue saw 78 per cent allocation to fund managers, 13 per cent to hedge funds, 6 per cent to private banks, and 3 per cent to other investors.

About $250 million of the proceeds will be used to refinance its parent company, Reliance Globalcom’s debt burden owed to Standard Chartered Bank. The remaining proceeds will be used for capital expenditure.

The notes are expected to be settled on August 1, 2014. Deutsche Bank and Standard Chartered Bank were the joint global coordinators for the offering.