Foreign Debt Crisis Management

International Financial Management (IFM)

Individual Project Report

Title of the project- Foreign Debt crisis management of RCOM

Batch–PGCBM -21
Centre –DAKC, Mumbai
Name- Rajesh Kumar Verma
Email- [e-mail], [e-mail]
SMS No- 110387
SID- RB12044
Table of Contents

1. Introduction 2. Purpose of the assignment 3. Gratitude to Professor and support staff 4. Introduction of IFM Assignment topic- Foreign Debt Crisis Management of RCom 5. Company Profile 6. Assignment analysis and study

A. Reliance Communications has secured loans from a host of Chinese banks to refinance $1.18 billion B. RCom has filed a prospectus with the Singapore Stock Exchange and plans to divest as much as 75% stake in Flag Telecom to raise about $1 Billion i) Background of Reliance Globalcom (Flag Telecom) ii) Cable network of Flag Telecom iii) Solutions offered by Reliance iv) Strategic Move by Reliance to fight with debt crisis

C. Reliance Communications has put on hold the initial public offering of its undersea cable unit Flag Telecom in Singapore D. Impact of heavy debt on company's financial credit worthiness and impact of rupee devaluation on overseas loan E. The impact of the high-debt levels has been further compounded because of the steep depreciation of the rupee 7. Impact of Un-hedged foreign currency debts due to rupee devaluation 8. Conclusion

INTRODUCTION

As a student of International Finance Management (IFM) I am glad to learn the concepts, principles and methodologies of the subject. I am a Telecom professional and working with Reliance communications at Mumbai, I wish to present my IFM assignment on the Debt crisis management by RCom and impact of un-hedged exposure aspects of RCom – a major Telecom Service provider in India.