Reliance Industries Raises $4 Billion In India's Largest Foreign Currency Bond Issuance

Reliance Industries on Thursday announced that it raised $4 billion by issuing senior unsecured notes across 10, 30 and 40 year tranches. Reliance Industries raised $1.5 billion and $1.75 billion in two tranches due in 2032 and 2052 at 2.875 per cent and 3.625 per cent respectively. The company also raised $750 million in bond issuance due in 2062 at 3.750 per cent.

The bonds issued by Reliance Industries were rated BBB+ by S&P and Baa2 by Moody's, Reliance Industries said. The Notes were nearly three times oversubscribed with a peak order book aggregating $11.5 billion and were priced through RIL’s secondary curve. The Notes have been priced at 120 basis points, 160 basis points and 170 basis points over the respective US Treasuries benchmark.

With this transaction Reliance Industries successfully concluded largest ever foreign currency bond issuance by an Indian company.

Interest on the notes will be payable semi-annually in arrears and the bond proceeds will be primarily used for refinancing of existing borrowings.

The notes received orders from over 200 accounts in Asia, Europe and the United States.

“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 US$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 at RIL.

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 acted as Joint Passive Book Runners.