Reliance Industries (RIL) is planning to raise Rs 500 crore through non-convertible debentures (NCDs).
The company, which has been assigned a 'AAA' rating from Crisil for the plan, has already raised Rs 115 crore in two transactions in September and October. The Crisil rating implies highest safety.
The NCDs floated in September, at a coupon of 12.1 per cent payable annually, was worth Rs 55 crore. The NCDs have a maturity period of five years.
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The October transaction was of Rs 50 crore with a greenshoe option of Rs 10 crore. These NCDs, with a maturity period of three years, were carrying a coupon of 11.6 per cent payable semi-annually.
"Rest of the transactions will be made as and when required," a company source said.
According to Crisil, the highest safety rating was accorded considering RIL's business strength in various areas including petroleum products, polymers, polyesters, and fibre intermediaries.
The company has plans to enter other businesses such as information technology, power generation and distribution, and insurance. Most of the investments in new businesses are expected to be through affiliates or subsidiaries with a significant support from RIL.
The extent of financial support to the new businesses would have a bearing on the company's financial risk profile.
Some of the new areas such as information technology will be exposed to technological obsolescence, evolving nature of demand, pricing and competition, besides financial risks.
However, the rating agency expects that the company's gearing would be maintained at the existing levels.
The rating also factors in RIL's comfortable net-gearing level and high interest coverage ratios.
In addition, significant cash accruals and large funds deployed in liquid assets continue to provide a high degree of financial flexibility.