TIL Desk/Business/Mumbai/ Reliance Industries Ltd, the nation’s most valuable company, on Thursday said it has raised $4 billion (around Rs 30,000 crore) in debt through the largest ever foreign currency bond issuance by an Indian entity. The oil-to-telecom conglomerate plans to use the proceeds of the three tranche issues to retire existing borrowings.
The issue was “nearly 3 times oversubscribed with a peak order book aggregating around $11.5 billion,” the company said in a statement. This is the largest ever foreign currency bond transaction in India, eclipsing ONGC Videsh Ltd’s $2.2 billion US dollar bonds issue of 2014.
Reliance raised $1.5 billion in a 10-year issue at a coupon or interest rate of 2.875 per cent, $1.75 billion in a 30-year deal at a 3.625 per cent rate and $750 million in a 40-year issue at a 3.75 per cent coupon rate. This is the first time any BBB-rated Asian company outside of Japan has issued a 40-year dollar bond.
The bonds in 10-year, 30-year and 40-year maturities are due to repayment between 2032 and 2062. Reliance plans to use the proceeds to retire some of the existing debt, including a $1.5 billion loan that is due to mature in February.
