Reliance Industries raises $750 million from overseas market

On January 22, the company had 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. In 2014, the company had raised over $3.3 billion in forex debt.

Reliance Industries today said it has raised $750 million (about Rs 4,624 crore) through issue of bonds to global investors in the overseas markets.

This is the second time within a few days that the Mumbai-based firm has hit theforex debt market.

"Reliance Industries has priced a Rule 144A/Regulation S offering of $750 million 4.875% Senior Unsecured Notes due 2045," it said in a statement.

On January 22, the company had raised $1 billion by selling 10-year bonds at aninterest rate of 4.125%, which the company claimed was the lowest in Asia and with almost no new-issue premium. In 2014, the company had raised over $3.3 billion in forex debt.

Reliance claimed that this is the first ever single tranche, 30 year deal and lowest coupon ever achieved by an Asian private corporate issuer for a 30-year issuance.

"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.

In terms of geographic distribution, 47% of the Notes were distributed in Asia, 45% in the US and 8% in Europe.

They were distributed to high quality fixed income accounts -- 52% to fund managers, 31% to insurance companies, 8% to pension funds, 6% to central banks and sovereign wealth funds, 2% to banks and one per cent to private banks.

"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.