India's Reliance Communications has set a price range of over $1billion for its undersea cable unit's initial public offering in Singapore.

According to a Reuters report, the parent company has set $1.09-$1.32 per unit and intends to use the raised amount for reducing its debt burden, which is to the tune of $7 billion as of March.

The Global Telecommunications Infrastructure Trust (GTI), the sub-sea cable unit of Reliance Communications Ltd., intends to sell 642.2 million to 757.6 million units at a price ranging between $1.09 and $1.32 per unit.

This would offer investors a yield of 9.5 percent to 11.5 percent and the trust would have a market capitalization of $1.268 billion to $1.535 billion, Reuters reported quoting its IFR Asia publication.

The yield offer by the company is higher than that offered by similar business trusts in Singapore as GTI is trying to attract investors in a sluggish IPO market. For instance, Li Ka-shing's Singapore-listed Hutchison Port Trust, which raised $5.5 billion in a Singapore IPO in March last year, has estimated a yield of 8.5 percent for 2013. The relatively high inflation rate (5 percent) and low interest rates in Singapore make the high yield offer attractive.

Billionaire Anil Ambani-promoted Reliance Communications had been trying to raise funds to pay its debts by selling assets. However, the company failed in its attempts. The current offering would help the company raise nearly $1 billion. The Reliance Globalcom, a wholly owned subsidiary of Reliance Communications, would have 25 to 37 percent of share after the issue, Reuters reported.

The offer opens Monday and will close July 16. Listing is targeted for July 23.

Deutsche Bank, DBS group, Standard Chartered and Industrial and Commercial Bank of China are the advisers for the public offering.

China Deutsche Bank India China