Reliance Industries raises $4 billion in US dollar bonds
Reliance Industries raised $1.5 billion for 10 years at a coupon or interest rate of 2.875%, $1.75 billion for 30 years at 3.625% and $750 million for a 40-year term at 3.750%. The issue was oversubscribed by three times and will be due for repayment bet-ween 2032 and 2062
MUMBAI : Reliance Industries Ltd (RIL) has raised $4 billion through the largest ever foreign currency bond issuance by an Indian enterprise, the company said on Thursday. The proceeds will be used to refinance some of its existing debt.
RIL raised $1.5 billion for 10 years at a coupon or interest rate of 2.875%, $1.75 billion for 30 years at 3.625% and $750 million for a 40-year term at 3.750%. The issue was oversubscribed by three times and will be due for repayment bet-ween 2032 and 2062, RIL said.
“The support received from marquee international capital market investors is reflective of the strength of our underlying businesses with established growth platforms across energy, consumer and technology as well as the robustness of our balance sheet," said Srikanth Venkatachari, joint chief financial officer, RIL.
The mega issue was the largest debt capital market transaction for RIL, and had “the tightest credit spreads across each of the long-dated tenors for any corporate in India".
The notes have been priced competitively at 120 basis points, 160 basis points and 170 basis points over the respective US treasuries benchmark, the company said.
The issue has the lowest coupon rate for benchmark 30-year and 40-year issuances and is the first ever 40-year tranche by a BBB-rated private sector corporate from Asia, excluding Japan.
RIL said the notes received orders from over 200 accounts in Asia, Europe and the US.
“The notes were distributed to high-quality fixed income accounts: 69% to fund managers, 24% to insurance companies, 5% to banks and 2% to public institutions," said RIL.
The interest on the notes will be paid semi-annually in arrears, and shall rank at par with all its unsecured and unsubordinated obligations.
Rating agency Moody’s rated the bond ‘Baa2’, while S&P Global Rating gave it ‘BBB+’; both having a ‘stable’ outlook on the bonds.
BofA Securities, Citigroup and HSBC were joint global coordinators to the issue. BofA Securities, Citigroup, HSBC, Barclays, JP Morgan and MUFG acted as joint active bookrunners. ANZ, BNP Paribas, Crédit Agricole CIB, DBS Bank, Mizuho, SMBC Nikko, StanChart and SBI were the joint passive bookrunners.
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