The Board of Reliance Power Ltd. on Thursday approved raising of funds up to $500 million (₹4,198 crore) through ultra-low interest (5% per annum) 10-year long-tenured unsecured Foreign Currency Convertible Bonds (FCCBs)

The FCCBs will be issued to affiliates of Värde Investment Partners, LP, a leading global alternative investment firm, Reliance Power said in a filing with the exchanges.

“The FCCBs will be unsecured and will have ultra-low interest of 5% p.a. with a long tenure of 10 years. The FCCBs will be convertible into equity shares at ₹51 per share,” it added.

The Board also approved an Employees Stock Option Scheme (ESOS) for all employees of the Company and its subsidiaries. ESOS provides for grant of up to 22,00,00,000 fully paid-up equity shares of ₹10 each, of value of over ₹1,180 crore, representing approximately 5% of the company’s fully diluted capital.