Reliance Industries Ltd (RIL) has raised $4 billion (around Rs 30,000 crore) in the largest bond issue by an Indian company in the overseas market.
The bonds — called unsecured notes — were 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, 160 basis points and 170 basis points over the respective US Treasuries benchmark,” RIL said.
RIL said it was the tightest ever implied credit spread over the respective US Treasury across each of the 3 tranches by an Indian corporate. It was also the lowest coupon achieved for benchmark 30- and 40-year issuances by a private sector ‘BBB’ rated corporate from Asia, excluding Japan, the company said. “The bond proceeds will be primarily used for refinancing of existing borrowings.”
According to RIL, the issue comprises $1.50 billion 2.875 per cent senior unsecured notes due in 2032, $1.75 billion 3.625 per cent unsecured notes due in 2052 and $750 million 3.750 per cent notes due in 2062.
“The notes received orders from over 200 accounts in Asia, Europe and the US. In terms of geographic distribution, the notes were distributed: 53 per cent in Asia, 14 per cent in Europe and 33 per cent in the US,” RIL said. The bonds were distributed to high quality fixed income accounts: 69 per cent to fund managers, 24 per cent to insurance companies, 5 per cent to banks and 2 per cent to public institutions.
Srikanth Venkatachari, joint chief financial officer, RIL, said, “We are extremely pleased with the strong outcome on our multi-tranche long dated bond issuance, having issued not only the largest debt capital market transaction at $4 billion but also the tightest credit spreads across each of the long-dated tenors for any corporate in India.”
Interest will be payable semi-annually in arrears and the bonds will rank pari passu with all other unsecured and unsubordinated obligations of RIL, it said.