Reliance Industries today said that its US arm has sold $500 million worth of its existing 5.4 per cent bonds maturing in February 2022. Earlier this month, the company had raised $1 billion via the same instrument.
The issue was priced at 325 basis points over the 10‐year US Treasury Note yielding 5.267 per cent. Barclays Capital, Citigroup Global Markets, and The Hongkong and Shanghai Banking Corporation acted as joint bookrunners and lead managers for the bond.
Citigroup said that the transaction was approximately 7.5 times oversubscribed with an order book aggregating $3.73 billion. Geographically, the notes were distributed 31 per cent in Asia, 19 per cent in Europe and 50 per cent in the US.
The proceeds of the bond sale will be deployed to refinancing the company’s debt and make capital expenditure. RIL’s Joint Chief Financial Officer V Srikanth said: "This is a very successful re-opening following a landmark bond offering concluded recently. We are delighted to see the strong demand from long term real money accounts and sovereign owned funds across Asia, Europe and the US."
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