Reliance Industries raises USD 4 billion in dollar bonds; issue subscribed three times
NEW DELHI: Mukesh Ambani-owned Reliance Industries Ltd (RIL) has raised $4 billion long-term debt through US dollar (unsecured) bonds in three tranches to refinance its existing debt.
The company in a statement on Thursday said that its debt papers have been subscribed nearly three times with a peak orderbook of $11.5 billion.
The company claims that it is one of the largest ever foreign currency bond issuance from India at one of the lowest rates for 30-year and 40-year debt papers.
The company also claims that this is the first ever 40-year tranche by a BBB private sector corporate from Asia (ex-Japan).
Reliance is raising $1.5 billion through 10-year bonds at 2.875%, $1.75 billion through 30-year bonds at 3.625% and another $750 million through a 40-year bonds paper at 3.750%. All the issues will be unsecured bonds
The bond issues have been rated BBB+ by S&P and Baa2 by Moody’s, which are a notch above India’s sovereign bond rating.
According to the company, bonds received orders from over 200 accounts in Asia, Europe and the US — 53% in Asia, 14% in Europe and 33% in the US.
The bonds were distributed to high quality fixed income accounts — 69% to fund managers, 24% to insurance companies, 5% to banks and 2% to public institutions.
In a statement, joint chief financial officer of RIL Srikanth Venkatachari said: “The support received from the 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 robustness of our balance sheet.”
Reliance had an outstanding debt of Rs 2.55 lakh crore at the end of Sept 2021 quarter. Moody’s says its ratings reflect the company’s large-scale and dominant market position across its diverse businesses.