New Delhi: Reliance Industries (RIL) has raised $4 billion in US dollar bonds, the largest debt capital market transaction by any corporate house in India.
The Mukesh Ambani-led firm has raised the amount in three phases – $1.5 billion over 10 years, $1.75 billion over 30 years and the remaining $750 million over 40 years.
According to the press statement, the notes were nearly three times oversubscribed with a peak order book of $11.5 billion and were priced through RIL’s secondary curve.
The company said the cash raised by RIL will be partly used to refinance $1.5 billion of debt due to mature in February.
The notes are priced at 120 basis points, 160 basis points and 170 basis points on the respective US Treasury benchmarks.
The notes have been rated BBB+ by S&P and Baa2 by Moody’s.
The Indian conglomerate has joined a select group of issuers from Asia to issue jumbo bonds.
According to a Reuters report, this was the largest ever foreign currency bond transaction in India, eclipsing the previous record set by ONGC Videsh in 2014 when it raised $2.2 billion in US dollar bonds.
“The support received from marquee international capital market investors reflects the strength of our underlying businesses with established growth platforms in energy, consumer and technology as well as the strength of our balance sheet. This issue continues Reliance’s tradition of being a sophisticated and innovative issuer in its capital structure,” RIL said in the statement.
Recently, global rating agency Moody’s Investors Service has assigned a Baa2 rating to USD-denominated senior unsecured bonds to RIL, with a stable outlook.
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