Mumbai: Reliance Industries Ltd (RIL) raised $225 million on 18 August by selling 2.512% notes due 2026, the company said in a notice to the stock exchanges.

The notes are guaranteed by the Export-Import Bank of the US.

“The notes are being issued at par and will bear a fixed interest rate of 2.512% per annum, with interest payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company. The principal amount of the notes will be payable in consecutive semi-annual instalments commencing on 15 July 2016 up to the maturity on 15 January 2026," said the company.

The money raised will be used by the company to replace a portion of the Ex-Im Bank-guaranteed floating rate loan which was availed to finance capital expenditure at its integrated refining and petrochemicals complex at Jamnagar, Gujarat.

RIL, in 2012-13, had embarked on a $12 billion refining and petrochemicals expansion plan which entailed increasing efficiency at its refinery and a 60% expansion of its petrochemicals capacity. The expansion is expected to be completed by 2016-17.

This is the first foreign fund-raising by the company in the current fiscal.

In February, RIL raised $750 million by selling 30-year bonds to international investors at an interest of 4.875% per annum with interest payable twice every year.

In January, the firm raised $1 billion by selling 10-year bonds to investors across Asia, Europe and the US to fund capital expenditure in its telecom and chemicals businesses.

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