Reliance Industries raises $750M from oversubscribed overseas debt issue

Mukesh Ambani-controlled Reliance Industries Ltd has raised $750 million (around RS 4,600 crore) through unsecured notes to global investors in the overseas markets, according to a statement.

The issue was oversubscribed more than 3x across 167 accounts.

The company has priced the US dollar denominated notes at 262.5 basis points over the 30-year US Treasury Note, at a price of 98.865 to yield 4.948 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 fund would be utilised for its ongoing capital expenditure, RIL said in the statement.

With the issue, RIL opened the 30-year market for corporate issuances out of Asia in 2015 and continues to be the only company out of India to have issued 30-year tenure bonds.

The notes have been assigned a rating of BBB+ by S&P and Baa2 Moody’s.

The development comes just a few days after 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 in Asia and with almost no new-issue premium.

In terms of geographic distribution, 47 per cent of the notes were distributed in Asia, 45 per cent in the US and 8 per cent in Europe.

On the other side, in terms of investor distribution, the notes were distributed to fixed income fund managers (52 per cent), insurers (31 per cent), pension funds (8 per cent), central banks and sovereign wealth funds (6 per cent), banks (2 per cent) and private banks (1 per cent).

“Like our previous issuances, we were able to efficiently execute through an intra-day window, despite volatility in asset markets,” V Srikanth, joint CFO of RIL, said in the statement.

Barclays Bank PLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc and The Hongkong and Shanghai Banking Corporation Limited acted as joint book-runners and lead managers.

On Wednesday, the shares of RIL were trading at Rs 928.80, down 8.65 per cent from their previous close on BSE in a weak Mumbai market.

(Edited by Joby Puthuparampil Johnson)

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