Reliance Industries Ltd., the most valuable company in the country, on Thursday said it has raised $ 4 billion (around ₹ 30,000 crore) through dabt
through the largest issuance of foreign currency bonds by Indian entities.
The oil-to-telecommunications oil conglomerate plans to use the results of three tranche problems for existing loan pensions.
The problem is "almost 3 times excess request with the peak order book that is reduced by around $ 11.5 billion," said the company in a statement.
This is the largest foreign currency bond transaction in India, giving rise to editions of bonds of $ 2.2 billion in the 2014 Ongc Videsh Bonds.
Dependence raises $ 1.5 billion in a 10-year problem with a coupon or an interest rate of 2.875%, $ 1.75 billion in a 30-year transaction at a rate of 3.625% and $ 750 million in a 40-year problem at a coupon level 3.75%.
This is the first time the Asian company ranked BBB outside Japan has issued 40-year-old dollar
bonds.
Bonds in maturity of 10 years, 30 years and 40 years are caused by payments between 2032 and 2062.
Reliance plans to use results to retire some of the existing debts, including a loan of $ 1.5 billion caused by mature in February.
The company said bonds carrying coupons (interest rates) related to the US treasury. 10-year Notes will bring a coupon level which is 1.2 percentage points above the 10-year US treasury, the 30-year bond will offer 160 basis points for appropriate US government bonds and 40-year record will provide 170 bases. Points on the US Treasury record each.
This, he said, represents the "most strict credit spread ever implied" on the US Treasury record by Indian companies.
The note was rated bbb + by S & P and Baa2 by Moody's.
By stating that with this, he has joined a group of certain issuers from Asia to make the issuance of Jumbo bonds, Reliance said 53% of the money was appointed from Asia, 14% from Europe and 33% in the United States.
In terms of investor profiles, 69% went to the fund manager, 24% for insurance companies, 5% to banks and 2% to public institutions.
"This transaction is significant in various counts - (IT) issuance of the largest foreign currency bonds from India, the top credit that has spread scattered in each US treasury in each of the 3 stages of Indian companies, the lowest coupon achieved for benchmarks . Issuance of 30-year and 40-year BBB corporate private sector of Asia ex-Japan, and Tranche first 40 years by a private sector company on the BBB EX-Japan Asia, "the statement said.
Reliance is a net-zero debt company with a cash balance ₹ 2.59 lakh crore, exceeding gross debt ₹ 2.55 lakh crore on September 30, 2021.
The existing cash, along with the expected cash flow from the operation, will be enough to close the cash flow out for capital expenditure and debt maturity in the next 18 months, Moody's investor service has said earlier this week.
In November 2021, he received around ₹ 26,600 Crore in the results of the last call about the Rights Issue, which further increases his liquidity.
Dependence says flowers on records will be paid for a half-year in arrears, and records must be ranked Pasu Passu with all unsafe and unusual company obligations. Bond revenues will be mainly used to refinance existing loans.
Srikanth VenkataChari, Head of the RIL's Financial Officer Joint, "We are very pleased with the strong results in the issuance of USD bonds dated our multi-tranche length, after being issued not only the largest debt capital market transactions at $ 4 billion but also the most strict. Credit Spread in each tenor dated to every company in India
deepak singh