RIL raises $4 bn in US dollar bonds, India Inc's biggest such sale abroad

Reliance Industries Ltd. (RIL) said on Thursday that it has raised $4 billion by issuing US dollar bonds in three tranches, claiming it to be the largest-ever foreign currency bond issuance from India. 

The conglomerate has raised $1.5 billion in a 10-year tranche, $1.75 billion in a 30-year and $750 million in a 40-year deal, it said in a regulatory filing. 

RIL had received board approval on January 1 to raise up to $5 billion in multiple tranches through US-denominated notes. The company said the bond issue was subscribed over three times with orders mostly from Asia and the US. 

Also Read: Reliance to raise up to $5 billion, to use it mainly for refinancing existing borrowings

The proceeds from the bond issue will primarily be used for refinancing existing borrowings. 

Srikanth Venkatachari, Joint CFO of RIL, said in a statement that the mega issue was not only the largest debt capital market transaction for the conglomerate, but also "the tightest credit spreads across each of the long-dated tenors for any corporate in India." 

"The Notes are rated BBB+ by S&P and Baa2 by Moody's. The Notes were nearly 3 times oversubscribed with a peak order book aggregating ~US$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," the RIL statement read. 

Also Read: Reliance to repurpose and restructure its gasification assets

The conglomerate's mega fund-raising comes at a time when it is eyeing a big push into the new renewable energy business, comprising hydrogen and solar, over the next decade. 

At its annual shareholders' meeting in 2021, RIL Chairman Mukesh Ambani had announced plans to infuse Rs 75,000 crore in the new energy business.