Reliance Industries raised $4 Billion in US Dollar bonds

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Reliance Industries raised $4 Billion in US Dollar bonds
07 Jan 2022
6 min read

News Synopsis

Reliance Industries has announced that it has raised $4 billion in US dollar bonds. This is the largest foreign currency bond issued for an Indian company. The company will use the bond to primarily refinance its existing borrowings. 

The bond was raised in three stages, $1.5 billion for 10 years at 2.875%, $1.75 billion for 30 years at 3.625% and $750 million for 40 years at a 3.750% coupon rate. The interest will be paid semi-annually on these bonds.

The Bank of America, Citigroup and HSBC acted as global coordinators for the issue of bonds. The notes received orders from more than 200 accounts from Asia,  the United States of America and Europe. The company has said that the majority of these notes were issued to high quality fixed income accounts.

The Bond sale is the debt financing option that is used by the companies, the investors earn a certain amount of money for a specific period of time. It does not include the sales of shares and so, the ownership of the company is not diluted.

TWN Opinion