BoA closes US private placement deal for RIL
Separately, the Bank in a newspaper advertisement said that the issue was for 300 million dollars.
By PTI |
NEW DELHI: Reliance Industries Ltd has raised 300 million dollars through private placement of debt securities in the US, marking the first such issue by an Indian company.
Bank of America Securities, which managed the issue, said it has successfully closed the debt placement for RIL, which would diversify the company's sources of funding and help it meet its capital expenditure needs.
Under the deal, RIL's senior unsecured notes have been placed under the US insurance companies for a period of 10 and 12 years and would serve to expand RIL's overall debt maturity schedule, the Bank said in a statement.
Separately, the Bank in a newspaper advertisement said that the issue was for 300 million dollars.
The financing would diversify the company's sources of funding, it said, adding that RIL plans to use the proceeds for capital expenditure requirements.
The deal marks the first ever US private debt placement by an Indian issuer. The issue was co-led by the brokerage subsidiary of US-based banking and financial services major Bank of America Corp.
"We see this deal as the beginning of a series of exciting fund raising alternatives for growing businesses in India," Bank of America MD and Global Head of debt private placement Stephen Monahan said.
Bank of America's India Country Executive Officer Vishavir Ahuja said this is the first issuance by an Indian company in the US private placement markets and the issue received excellent investor response.
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