RIL raises $750 mn from overseas market

This is the second time within a few days that the Mumbai-based firm has hit the forex debt market.

Reliance Industries said on Wednesday that it has raised $750 million (about Rs 4,624 crore) through issue of bonds to global investors in the overseas markets.

This is the second time within a few days that the Mumbai-based firm has hit the forex debt market.

"Reliance Industries has priced a Rule 144A/Regulation S offering of $750 million 4.875 per cent Senior Unsecured Notes due 2045," it said in a statement.

On January 22, the company had raised $1 billion by selling 10-year bonds at an interest rate of 4.125 per cent, which the company claimed was the lowest in Asia and with almost no new-issue premium. In 2014, the company had raised over $3.3 billion in forex debt.

Reliance claimed that this is the first ever single tranche, 30-year deal and lowest coupon ever achieved by an Asian private corporate issuer for a 30-year issuance.

"The Notes have been priced at 262.5 basis points over the 30-year US Treasury Note, at a price of 98.865 to yield 4.948 per cent... The funds will be used for its ongoing capital expenditure," it added.

The issue has been rated Baa2 by Moody's Investors Service.

In terms of geographic distribution, 47 per cent of the Notes were distributed in Asia, 45 per cent in the US and 8 per cent in Europe.

They were distributed to high quality fixed income accounts -- 52 per cent to fund managers, 31 per cent to insurance companies, 8 per cent to pension funds, 6 per cent to central banks and sovereign wealth funds, 2 per cent to banks and one per cent to private banks.

"We are delighted to continue to lead the way for Asian corporate to access long-term financing at attractive rates. Like our previous issuances, we were able to efficiently execute through an intra-day window, despite volatility in asset markets," RIL Joint Chief Financial Officer V Srikanth said.

Bank of America Merrill Lynch, Barclays Bank PLC, Citigroup Global Markets Inc and The Hong Kong and Shanghai Banking Corporation Ltd acted as joint book runners and lead managers.