Reliance Industries Ltd (RIL) had raised $1.5 billion through an overseas bond sale programme over the weekend, two people with the direct knowledge of the development said.
With the latest debt-raising, the Mukesh Ambani-led oil, gas, petrochemicals and retail giant has raised $4 billion so far this year, with the first two being a $1.5-billion issue in February and another $1-billion issue in May.
While an RIL spokesperson refused to comment, the banks that snapped up the issue could not be reached.
Of the $2.5 billion raised by RIL (which still is one of the least leveraged large companies in the country with less than 0.5 per cent debt-equity ratio) earlier, the proceeds from first issue of $1.5 billion were raised by its US subsidiary for its shale gas programme, while the other was meant for the expansion of its Jamnagar refinery complex.
The current funds would also be used to finance its capital expansion programme as planned. The latest unsecured syndicated loan has two maturities. While $1 billion are a six-year US dollar money, the rest $500 million are a 7.25-year money, according to sources, who did not reveal the pricing of the issue. This was the first longest tenor unsecured syndicated debt raised by an Asian issuer this year. The instrument, sold in the North American, European, Asian and Australian markets, was snapped by as many as 28 international and domestic banks with the major ones being State Bank of India, Bank of America, Bank of Nova Scotia, the ANZ Banking Group, Bank of Tokyo Mitsubishi, Sumitomo Mitsubishi Banking Corp, HSBC Group and RBS, the sources said, adding the i-banking arms of these bankers acted as merchant bankers to the deal.
The sources also said the company, which has a AAA rating, did not encourage oversubscription and also did not do any marketing but still got full subscription.
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Many domestic companies, mostly banks, have been selling their debt in overseas markets this year. After RIL, SBI’s $1.25-billion bond sale in July was the largest so far this year. It was followed by Exim Bank’s $750-million debt sale in two installments, in August and September.
Others who raised money from foreign bond market include ICICI Bank, Bank of India, Union Bank, Indian Overseas Bank, Syndicate Bank, Axis Bank, and IDBI Bank, who had raised more than $3 billion in the past two months.