Reliance Industries Raises $4 Billion, Largest Foreign Currency Bond Issuance from India

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The multi-tranche offer comprised of $1.5 billion in a 10-year tranche at 2.875 per cent coupon rate, $1.75 billion in a 30-year deal at 3.625 per cent rate, $750 million in a 40-year deal at 3.75 per cent coupon rate

Reliance Industries announced on January 5 that it has raised $4 billion in a three tranche US-dollar bond issue. The offer comprised of $1.5 billion in a 10-year tranche at 2.875 per cent coupon rate, $1.75 billion in a 30-year deal at 3.625 per cent rate, $750 million in a 40-year deal at 3.75 per cent coupon rate. This was the largest ever foreign currency bond issuance from India.

The notes have been priced at 120 basis points, 160 basis points and 170 basis points over the respective US Treasuries benchmark. “Interest on the Notes will be payable semi-annually in arrears and the Notes shall rank pari passu with all other unsecured and unsubordinated obligations of RIL,” Mukesh Ambani-owned company said in a press release.

The notes were rated BBB+ by S&P and Baa2 by Moody’s, the company mentioned.

With this, Reliance Industries Limited has joined a select group of issuers from Asia to have made jumbo bond issuances. The notes received orders from over 200 accounts in Asia, Europe and the United States, the company mentioned.

The bond proceeds will be used for refinancing of existing borrowings.

“We are extremely pleased with the strong outcome on our multi-tranche long dated USD bond issuance, having issued not only the largest debt capital market transaction at $4 billion but also the tightest credit spreads across each of the long-dated tenors for any corporate in India,” said Srikanth Venkatachari, joint chief financial officer of RIL.

“The support received from the marquee international capital market investors is reflective of the strength of our underlying businesses with established growth platforms across energy, consumer and technology as well as robustness of our balance sheet. This issue continues the tradition of Reliance being a sophisticated and innovative issuer across the capital structure,” he added.

BoFA Securities, Citigroup, and HSBC acted as joint global coordinators.

BofA Securities, Citigroup, HSBC, Barclays, JP Morgan and MUFG acted as joint active bookrunners. ANZ, BNP PARIBAS, Crédit Agricole CIB, DBS Bank Ltd., Mizuho Securities, SMBC Nikko, Standard Chartered Bank and State Bank of India, London Branch were the joint passive bookrunners.

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