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Reliance raises $4 billion in biggest ever forex bond issue

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New Delhi: Country’s Most Valuable Industries Limited company, said on Thursday it has raised $4 billion (about Rs 30,000 crore) in debt through the largest ever foreign Posture Issue of bonds by an Indian entity.

Oil-to-telecom conglomerate plans to use three tranches of proceeds for existing retirement credit.

“The issue was nearly 3 times oversubscribed with a peak order book of approximately $11.5 billion,” the company said in a statement.

This is the largest ever foreign currency bond transaction in India after ONGC Videsh Limited at US$2.2 billion. bond The issue of 2014.

Reliance raised $1.5 billion in a 10-year issue at a coupon or interest rate of 2.875%, $1.75 billion in a 30-year deal at 3.625%, and $750 million in a 40-year issue at a coupon rate of 3.75%.

This is the first time a BBB-rated Asian company outside Japan has issued a 40-year dollar bond. Bonds with 10-year, 30-year and 40-year maturities are due for repayment between 2032 and 2062.

Reliance plans to use the proceeds to pay off some existing debt, including a USD 1.5 billion loan that is due to mature in February.

The company said that the bonds carry Coupons (interest rate) linked to the US Treasury. The 10-year notes will have a coupon rate that is 1.2 percentage points higher than the 10-year US Treasury note, the 30-year bond will offer 160 basis points over the respective US government bond and the 40-year note will offer 170 basis points over the respective US Treasury note. on points.

This, it said, represents the “toughest vested credit spread ever” on US Treasury notes by an Indian company.

Notes is rated BBB+ by S&P and Baa2 by Moody’s. Stating that with this, it has joined a select group of issuers from Asia to issue jumbo bonds, Reliance said, raising 53% of the funds from Asia, 14% from Europe and 33% in the United States. went. In terms of investor profile, 69% went to fund managers, 24% to insurance companies, 5% to banks and 2% to public institutions.

“This transaction is significant in various respects – (it) the largest ever foreign currency bond issuance from India, the tightest ever vested credit spread by an Indian corporate to the respective US Treasury in each of the 3 phases.” , lowest coupon received for benchmark 30-year and 40-year issuance by a private sector BBB corporate from Asia ex-Japan, and the first 40-year tranche by a BBB private sector corporate from Asia ex-Japan,” the statement stated in.

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Usama Younus

Usama Younus is the owner and super admin of the site he's is an expert in news editing, tech and entertainment magazine management, and articles editing E.T.C.

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