Mumbai, Sept 28 :     The Reliance group will issue debentures worth Rs 130 crore to Raymond Ltd following the agreement to buyout of the latter?s 36 per cent stake in Raymond Synthetics Ltd (RSL). Confirming this, a top Raymond official said the amount to be paid by the Reliance group is in lieu of unsecured interest-free loans that were issued in the past by the Vijaypat Singhania-owned company to Raymond Synthetics. Although sources refused to divulge the nature of these debentures, they said these will be payable over a period of time. Analysts said such an understanding would ultimately work to the benefit of Raymond Ltd. ?While the sale of the 36 per cent stake in the ailing Raymond Synthetics will see an end to the outgo of money from Raymond, the issue of Reliance debentures will ensure that whatever was given to Raymond Synthetics will now flow back,?? they said. The Reliance group had announced on Monday that Silvassa Yarn, a group concern, will acquire the 36 per cent stake at a price of Rs 5 per share. It will also make an open offer to buy another 20 per cent of Raymond Synthetics? equity from the public. The acquisition of the 36 per cent stake will involve a consideration of Rs 22.33 crore. ?We have not yet taken a final decision on how to use the entire proceeds from the sale of the stake in Raymonds Synthetics. However, it will be largely used to reduce debt,?? the official said. The Rs 1,307 crore company is now planning to shore up its distribution network for its range of brands in the textile business. While the company has around 235 franchisees for its brands, it will be extended to 300 within a timeframe of 12-18 months. Apart from a robust network, the strong value attached to brands such as Raymond?s, Park Avenue, Kama Sutra and Parx is expected to drive the group forward in the new millennium. Sources said the success of recently launched brands like Parx is likely to ensure that textile despatches by November this year equal the entire sales clocked in the previous year.