Mumbai: Mukesh Ambani-led Reliance Industries Limited (RIL) said on Thursday it has raised $4 billion in US dollar bonds which is the largest such issue by an Indian corporate. The bond issue was nearly three times oversubscribed.
“The bond proceeds will be primarily used for refinancing of existing borrowings,” RIL said in a statement. “We are extremely pleased with the strong outcome on our multi-tranche long dated USD bond issuance, having issued not only the largest debt capital market transaction at $4 billion but also the tightest credit spreads across each of the long-dated tenors for any corporate in India,” said Srikanth Venkatachari, Joint Chief Financial Officer of RIL.
“The support received from the marquee international capital market investors is reflective of the strength of our underlying businesses with established growth platforms across energy, consumer and technology as well as robustness of our balance sheet. This issue continues the tradition of Reliance being a sophisticated and innovative issuer across the capital structure,” Venkatachari added.
RIL has joined a select group of issuers from Asia to have made jumbo bond issuances. The bond has been rated BBB+ by S&P and Baa2 by Moody’s.
The bonds have been priced at 120 basis points, 160 basis points and 170 basis points over the respective US Treasuries benchmark.
The Notes received orders from over 200 accounts in Asia, Europe and the United States. In terms of geographic distribution, the Notes were distributed: 53 per cent in Asia, 14 per cent in Europe and 33 per cent in the United States.
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, Credit Agricole CIB, DBS Bank Ltd., Mizuho Securities, SMBC Nikko, Standard Chartered Bank and State Bank of India, London Branch acted as Joint Passive Bookrunners, RIL said.
