RIL raises $1.5 bn via dollar notes
Reliance Industries said it has raised $1.5 bn from its first benchmark sale of bonds denominated in US dollars. Mukesh Ambani-run firm sold $1 bn of 10-year notes and $500 mn of 30-year bonds.
By PTI |
NEW DELHI: Reliance Industries on Friday said it has raised $1.5 bn from its first benchmark sale of bonds denominated in US dollars. Billionaire Mukesh Ambani-run firm sold $1 bn of 10-year notes and $500 mn of 30-year bonds, the company said in a press statement.
Reliance Holding USA Inc, a wholly owned subsidiary of Reliance Industries, priced the 10-year notes at 205 basis points, or 2.05 percentage points, more than similar maturity US Treasury note and the 30-year bond at 240 basis points.
The two notes “will be denominated in US dollars, and will bear fixed interest of 4.5% and 6.25% per annum , respectively, with interest payable semi-annually in arrear,” it said.
Reliance Holding will use the net proceeds to refinance existing debt, making other business investments and for general corporate purposes. It had taken $765 million loan to purchase shale-gas properties in the United States.
Company's chief financial officer Alok Agarwal said: “I am delighted with the outcome of this offering. It is truly a global benchmark supported by high quality accounts that believe in Reliance's credit and value creation story.”
“The transaction priced through global comparables and was nearly 7.8 times oversubscribed with an order book aggregating $11.6 bn,” it said.
Reliance Holding USA Inc, a wholly owned subsidiary of Reliance Industries, priced the 10-year notes at 205 basis points, or 2.05 percentage points, more than similar maturity US Treasury note and the 30-year bond at 240 basis points.
The two notes “will be denominated in US dollars, and will bear fixed interest of 4.5% and 6.25% per annum , respectively, with interest payable semi-annually in arrear,” it said.
Reliance Holding will use the net proceeds to refinance existing debt, making other business investments and for general corporate purposes. It had taken $765 million loan to purchase shale-gas properties in the United States.
Company's chief financial officer Alok Agarwal said: “I am delighted with the outcome of this offering. It is truly a global benchmark supported by high quality accounts that believe in Reliance's credit and value creation story.”
“The transaction priced through global comparables and was nearly 7.8 times oversubscribed with an order book aggregating $11.6 bn,” it said.
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