Reliance Industries Limited (RIL) said it has raised $4 billion in long- term debt of up to 40 years through the largest-ever foreign currency bond issuance by an Indian company.
The company plans to use the proceeds of the Senior Unsecured Notes across 10, 30 and 40-year tranches for refinancing of existing borrowings.
The bonds, due for maturity in 2032, are priced at 2.875%, while those due in 2052 and 2062 were priced at 3.625% and 3.750%, respectively.
RIL said the issue was oversubscribed almost three times nearly 3 times oversubscribed with a peak orderbook aggregating $11.5 billion and were priced through RIL’s secondary curve.
“The notes have been priced at 120 basis points (bps), 160 bps and 170 bps over the respective U.S. Treasuries benchmark,” it said in a statement.
“RIL has joined a select group of issuers from Asia to have made jumbo bond issuances,” the company said adding “this is the largest ever foreign currency bond issuance from India and first ever 40-year tranche by a BBB private sector corporate from Asia ex-Japan,” it said.
The Notes received orders from over 200 accounts in Asia, Europe and the United States.
Srikanth Venkatachari, Joint Chief Financial Officer of RIL said, “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 US$4 billion but also the tightest credit spreads across each of the long-dated tenors for any corporate in India.”
“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,” he added.
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