The Telegraph
Monday , October 8 , 2012
Since 1st March, 1999
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Reliance mops up $1.5bn via bond sale

Mumbai, Oct. 7 (PTI): Reliance Industries Ltd (RIL), which is sitting on a cash pile of nearly Rs 73,000 crore, has mopped up $1.5 billion through an overseas bond sale over the weekend, two people familiar with the development said.

With the latest debt raising, the Mukesh Ambani-led conglomerate has raised $4 billion so far this year, with the first two being a $1.5-billion issue in February and another $1 billion in May.

The RIL spokesperson refused to comment, and the banks, which snapped up the issue, could not be reached.

Of the $2.5 billion raised by RIL (which still is one of the least leveraged large corporate houses in the country with less than 0.50 per cent debt-equity ratio) earlier, the proceeds from first issue of $1.5 billion were mopped up by its US subsidiary for its shale gas programme, while the other was meant for its Jamnagar complex expansion.

The current funds will also be used to finance its capital expansion programme.

The latest unsecured syndicated loan has two maturities. While $1 billion are a six-year dollar money, the rest $500 million are a 7.25-year money, according to sources, who did not reveal the pricing of the issue.

The instrument, sold in the North American, European, Asian and Australian markets, was snapped up by as many as 28 international and domestic banks with the major ones being the State Bank, Bank of America, Bank of Nova Scotia, the ANZ Banking Group, Bank of Tokyo Mitsubishi, Sumitomo Mitsubishi Banking Corp, HSBC Group and RBS, sources said.