Reliance Industries announced on January 5 that it has raised $4 billion in a three-tranche US dollar bond issue. The offer included $1.5 billion in a 10-year tranche at a 2.875% coupon, $1.75 billion in a 30-year deal at 3.625 percent interest, and $750 million in a 40-year deal at 3.625 percent. a coupon of 3.75%. This was India’s largest ever foreign currency bond issue.
The bonds are priced at 120 basis points, 160 basis points and 170 basis points above the respective benchmark of US Treasuries. “Interest on the bonds will be paid semi-annually in arrears and the bonds will rank pari passu with all other unsecured and senior liabilities of RIL,” the company owned by Mukesh Ambani said in a press release.
The notes were rated BBB+ by S&P and Baa2 by Moody’s, the said company.
With this, Reliance Industries Limited has joined a select group of issuers from Asia to have launched jumbo bond issuances. The notes received orders from more than 200 accounts in Asia, Europe and the United States, the company said.
The proceeds of the bond will be used to refinance existing loans.
“We are extremely pleased with the strong performance of our long-term multi-tranche bond issuance, where we not only issued the largest transaction in the debt capital market at $4 billion, but also have the tightest credit spreads across any of the long-term maturities for each business. in India,” said Srikanth Venkachari, joint chief financial officer of RIL.
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“The support we have received from the major international capital market investors reflects the strength of our underlying companies with established growth platforms in energy, consumer and technology, as well as the robustness of our balance sheet. This issuance continues the tradition of Reliance being an advanced and innovative issuer across the capital structure,” he added.
BoFA Securities, Citigroup and HSBC acted as joint global coordinators.
BofA Securities, Citigroup, HSBC, Barclays, JP Morgan and MUFG acted as joint active bookrunners. ANZ, BNP PARIBAS, Crédit Agricole CIB, DBS Bank Ltd., Mizuho Securities, SMBC Nikko, Standard Chartered Bank and State Bank of India, London Branch were the joint passive bookrunners.
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