Updated: January 2, 2022 1:27:32 am
Mukesh Ambani-led Reliance Industries Ltd (RIL) on Saturday said it will raise up to $5 billion in foreign currency-denominated bonds and use the proceeds to retire existing borrowings.
The bond sale is poised to become the single largest such borrowing by an Indian company.
As per a stock exchange filing by the conglomerate, the Finance Committee of the company board, at its meeting, on Saturday approved a “proposal for issuance of senior unsecured US Dollar-denominated fixed-rate notes from time to time, for an aggregate amount up to USD 5 billion, in one or more tranches”.
“The proceeds from the issuance of the Notes will be utilised primarily for refinancing of existing borrowings, in accordance with the applicable law,” it added.
While RIL did not divulge details of the timing or the pricing of the bonds, it is likely that the 10-year debt may be offered at about 110 to 130 basis points over the US Treasury benchmark, and the 30-year debt may be at 130 to 140 basis points over similar-maturity Treasuries. On Friday, RIL arm Reliance New Energy Solar Ltd inked a deal to buy UK-based battery tech firm Faradion.
With PTI inputs
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