Reliance seeks $1 billion from subsea cable unit spin-off

India’s Reliance Communications is seeking to raise up to $1 billion from the listing of its subsea cable unit in Singapore, according to a source. The unit is listing as a business trust to reflect its utility-like cash flows and to enable it to pay higher dividends. It is scheduled to start trading on July 23.

Global Telecommunications Infrastructure Trust GTI Trust is offering 55% to 65% of its total number of units at a price between $1.09 and $1.32 each, which implies a dividend yield of 9.5% to 11.5% for the fiscal year to March 2013.

The yield looks generous compared to other business trusts in...