Reliance Industries to raise $5 billion to refinance debt
Reliance Industries Ltd (RIL) is raising up to $5 billion to refinance debt.
The oils-to-telecom conglomerate on Saturday said the finance committee of its board of directors have approved a proposal for issuance of senior unsecured US dollar denominated fixed rate notes for an aggregate amount up to $5 billion in one or more tranches.
The proceeds from these notes will be used primarily to refinance existing borrowings in accordance with the applicable law.
RIL is a net debt free company. For the period ended September 30, while its outstanding debt stood at Rs 255,891 crore, the cash and cash equivalents were at Rs 259,476 crore.
RIL’s announcement came amid a report in the Economic Times that it will raise up to $3 billion, which will be the largest offshore raising by an Indian company in one shot.
The report added that the move will enable the company to save funding cost by around 50 basis points and that the bonds will be of 10 and 30-year maturities.
Such targeted savings in its finance costs come at a time RIL has come up with huge plans in clean energy.
RIL chairman and managing director Mukesh Ambani has announced that it will invest Rs 75,000 crore in new clean and green energy business over the next three years.
As part of this plan, it is developing Dhirubhai Ambani Green Energy Complex at Jamnagar which will be amongst the world’s largest renewable energy manufacturing facilities in the world.