Reliance Industries Limited (RIL) said it has raised $4 billion in long-term debt of up to 40 years by issuing the largest ever foreign currency bond issue by an Indian company.
The company plans to use the proceeds of senior unsecured notes in installments of 10, 30 and 40 years to refinance existing borrowings.
The bond due to maturity in 2032 is priced at 2.875%, while those payable in 2052 and 2062 were priced at 3.625% and 3.750%, respectively.
RIL said the issue was oversubscribed nearly three times and oversubscribed with a peak orderbook of $11.5 billion and was priced through RIL’s secondary curve.
“The notes have been priced 120 basis points (bps), 160 bps and 170 bps above the respective US Treasury benchmarks,” it said in a statement.
“RIL has joined a select group of issuers from Asia to issue Jumbo Bonds,” the company said, adding, “This is the largest ever foreign currency bond issue from India and the BBB private sector from Asia. This is the first 40-year tranche by the corporate of East Japan,” it said.
The notes received orders from over 200 accounts in Asia, Europe and the United States.
Srikanth Venkatachari, Joint Chief Financial Officer, RIL said, “We are extremely pleased with the strong result of our multi-tranche long USD bond issuance, which has not only issued the largest debt capital market transaction of USD 4 billion , but also has issued the strictest credit spread over each of the longest standing periods for any corporate in India.”
“The support received from marquee international capital market investors reflects the strength of our underlying businesses with established growth platforms in energy, consumer and technology as well as the strength of our balance sheet. This issue continues the tradition of Reliance being a sophisticated and innovative issuer in its capital structure,” he said.
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