Mumbai, May 10: The board of Reliance Natural Resources (RNRL) today announced an FCCB issue of $250 million plus a greenshoe option of $50 million.

The FCCBs have a conversion price of Rs 37 per share, a premium of 20 per cent to RNRL’s share price today. RNRL shares closed at Rs 31.55 on NSE. The FCCBs have a maturity of five years and one day and will be listed on the Singapore Stock Exchange, a company release said.

RNRL said it would use issue proceeds to finance its long-term expansion plans, adding that it would soon give out the details on utilisation of the proceeds.

RNRL has signed a subscription agreement with Barclays Capital, the sole arranger to the issue. The FCCB issue will conform to existing guidelines.

RNRL has recently reached a gas supply agreement with Reliance for Anil Ambani’s 8,000-mw power project at Dadri, Uttar Pradesh.

The pricing was based on the gas supply contract that RIL had signed with PSU major NTPC. Since the market conditions during the deal with NTPC were similar to what prevailed when negotiations were being undertaken with RNRL, the pricing in both cases was the same.

RNRL was listed at Rs 17.50 on the stock exchanges on March 1. It turned into a public limited company on July 25, 2005. Its name got changed to Reliance Natural Resources after it received the certificate of incorporation on January 9, 2006.