Reliance Communications is planning to raise upto $1.5Bn by listing it’s Singapore based undersea cable unit – Flag Telecom.

Under the offer, FLAG Telecom will be listed as a business trust and Deutsche Bank is working on the deal. Reliance may sell 75% stake in the unit seeking a valuation of $2bn.

Deustche Bank is handling the share sale for Reliance.

Reliance Communication had acquired Flag undersea cable network for $207Mn in 2003 and the business is now part of its Reliance Globalcom unit, which owns the world’s largest private undersea cable system spanning 65,000 kilometers. According to Reuters, Reliance was looking to sell the undersea cable business in December 2009 for about $3Bn, but found no takers.

Reliance Communication has been trying to raise funds by selling assets to cut its debt load – $6.5Bn as of September – but has had little success.

Recently, Reliance raised funds from Industrial and Commercial Bank of China Ltd (ICBC), China Development Bank Corporation (CDB), Export Import Bank of China(EXIM) and other Banks for redemption of outstanding FCCBs of $1.18 Bn (R6125Cr).

The company tried to sell off it’s tower business – Reliance Infratel but the deal dint go through. It was talking to GTL Infrastructure for a stake sale in the tower business but the deal stalled due to valuation differences. It is also talking to several PE players including Carlyle Group and Blackstone on a telecom towers deal, but there is no development on the deal.

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