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Reuters Photo Credit: Mukesh Ambani

Reliance Industries raises $200M via Formosa bond sale in Taiwan

19 May, 2015

Mukesh Ambani-controlled Reliance Industries Ltd has raised $200 million (around Rs 1,275 crore) through senior unsecured callable notes issued in Taiwan, commonly known as Formosa bonds, it said on Tuesday.

The bond was subscribed by Taiwanese life insurance companies.

This marks the first Formosa bond by an Indian company and first by any energy company globally. A Formosa bond is a bond issued in Taiwan but denominated in a currency other than the New Taiwan Dollar.

These notes have been issued for a period of 20-years at par to yield 5 per cent. The interest is payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company.

The US dollar dominated bonds are proposed to be listed on Taipei Exchange.

The notes, which are callable every year starting June 5, 2020, will be utilised to meet the company’s ongoing capital expenditure, Reliance Industries said in the statement.

While Deutsche Bank AG, Taipei Branch and HSBC (Taiwan) Ltd acted as joint bookrunners and lead managers on the transaction, Morgan Stanley & Co was the structuring agent.

Earlier this year, the company hit global forex debt market to raise $1 billion by selling 10-year bonds at an interest rate of 4.125 per cent, the lowest yield paper in Asia and with almost no new-issue premium.

On Tuesday, the shares of RIL ended at Rs 895.50 each, up 0.56 per cent on the BSE in a flat Mumbai market.


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Reliance Industries raises $200M via Formosa bond sale in Taiwan

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