Mumbai : Reliance Industries Ltd (RIL) on Tuesday said it has raised $800 million by selling 10-year bonds in the first offering since Moody’s raised India’s sovereign rating after 14 years.
According to the Mukesh Ambani-led RIL, the bonds, priced at 3.66 per cent, were the lowest coupon ever achieved by an Indian corporate for a 10-year issuance. “The notes have been priced at 130 basis points over the 10-year US Treasury Note, at a price of 100 to yield at 3.667 per cent,” according to a company statement. They “will bear fixed interest of 3.66 per cent per annum, with interest payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company,” it added. RIL will use the proceeds to refinance existing debt. India’s largest company has a debt of around $12 billion (Rs 75,000 crore) on its books, a major portion of which will mature next year. “The company will use the proceeds to redeem its existing $800 million 5.875 per cent senior perpetual fixed rate unsecured notes pursuant to the terms of such notes,” it said.
The notes were oversubscribed more than 1.6 times across 90 accounts.
The statement said this was the tightest ever spread over US Treasury for an Indian entity for a 10-year issuance, as also the tightest ever spread over US Treasury for a 10-year BBB corporate issuance from Asia minus Japan since the global financial crisis.
Issued against the backdrop of the upgrade of the country ratings by Moody’s, RIL successfully concluded a swift intra-day execution to capitalise on the market window, according to Joint Chief Financial Officer V. Srikanth.
