Reliance Industries raises $ 4 billion in India’s largest dollar bond issue – Ultra News

Reliance Industries has raised $ 4 billion (around Rs 30,000 cr) through the largest foreign currency bond issue ever by an Indian entity.

The amount will be used to repay the group’s existing debt.

The bonds were issued with 10, 30 and 40 year maturities, and also mark the first time that an Asian BBB-rated company outside of Japan has issued a 40-year dollar bond.

The notes will bear a coupon (interest rate) linked to US Treasury Bills. The 10-year bonds will carry a coupon rate that is 1.2 percentage points above the 10-year US Treasury bill, the 30-year bond will offer 160 basis points on the corresponding US government bond and the voucher at 40 will give 170 basis points. points on the respective US Treasury note.

This represents “the tightest implied credit spread ever” by an Indian company on US Treasuries in each of the 3 tranches, Reliance Industries said.

53% of the money was collected in Asia, 14% in Europe and 33% in the United States, RIL said.

In terms of investor profile, 69% went to fund managers, 24% to insurance companies, 5% to banks and 2% to public institutions.

With it, the company said, it “joined a select group of Asian issuers for doing jumbo bond issues.”

The notes have been oversubscribed nearly 3 times with a peak backlog totaling around $ 11.5 billion.

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