RIL raises $750 mn from overseas market

RIL had on January 22 raised $1 billion by selling 10-year bonds at an interest rate of 4.125 per cent

Reliance Industries today raised $750 million (about Rs 4,624 crore) through a 30-year overseas bond issue, just a fortnight after it raised $1 billion in India's first such bond of the year.

The issue carried a coupon of 4.875%, which is the lowest achieved by an Asian private corporate issuer in the 30 year bucket. RIL priced its latest Reg S/144A bond at Treasuries plus 262.5 basis point, which is 22 basis point tighter than its initial price offering.

RIL had on January 22 raised $1 billion by selling 10-year bonds at an interest rate of 4.125%, which the company claimed was the lowest in Asia and with almost no new-issue premium. It had raised over USD 3.3 billion in forex debt last year.

Today's bond issue is the "first ever single tranche 30- year deal by a private corporate issuer out of Asia," the company said in a statement, adding that it carried lowest coupon ever achieved by an Asian private corporate issuer for a 30 year issuance.

RIL is the only company out of India to have issued 30 year bonds.

Order books for the issue reached $2.3 billion from more than 160 accounts, with 47% of the notes going to Asian investors, 45% to US investors and the remainder to European accounts.

Fund managers subscribed to slightly more than half of the offering, followed by insurers with 31%, private funds with 8%, central banks and sovereign wealth funds with 6%, banks with 2% and private banks with 1%.

RIL raised a $1 billion 10 year senior unsecured bond on January 21, which attracted a global order book of $4.5 billion from 272 accounts.

"The Notes have been priced at 262.5 basis points over the 30-year US Treasury Note, at a price of 98.865 to yield 4.948%... The funds will be used for its ongoing capital expenditure," it added.

The issue has been rated Baa2 by Moody's Investors Service.

"We are delighted to continue to lead the way for Asian corporates to access long-term financing at attractive rates. Like our previous issuances, we were able to efficiently execute through an intra-day window, despite volatility in asset markets," RIL Joint Chief Financial Officer V Srikanth said.

Bank of America Merrill Lynch, Barclays Bank PLC, Citigroup Global Markets Inc and The Hongkong and Shanghai Banking Corporation Ltd acted as Joint Book runners and Lead Managers.