Reliance Industries has hit the forex debt market second time in as many weeks to raise about $1 billion in a benchmark 30-year dollar-money note sale to international investors.
On January 22, the company had raised $1 billion by selling 10-year bonds at an interest rate of 4.125 per cent, which the company claimed was the lowest in Asia and with almost no new-issue premium. In 2014, the company had raised over $3.3 billion in forex debt.
"Reliance is in the market with a benchmark issue to sell 30-year US dollar-denominated Reg S fixed rate senior unsecured notes.
The company has given an initial price guidance of 285 bps above the 30-year US treasury bills/ The company may raise up to $1 billion," multiple sources at merchant bankers working on the issue told PTI, requesting they not be named.
Company officials could not be reached for the comment. They also said the benchmark issue could be as large as $1 billion and will be priced tonight after the New York markets open, and will be listed on the Singapore Exchange.
The lead arrangers to the issue are Barclays, HSBC and Citi, among others. The issue has been rated Baa2 by Moody's Investors Service with a stable rating and the proceeds from the issue will be used to fund the company's capital expenditure of Rs 1.8 trillion over the next few years.
"RIL's Baa2 rating reflects its leading market position, globally competitive refining business which has consistently commanded higher margins than its competitors, and vertically-integrated operations across the hydrocarbon chain.
The rating also recognises RIL's moderate financial leverage, strong operating cash flow and excellent liquidity," says one of Moody's vice presidents and senior credit officers Vikas Halan in a note offering the rationale for the rating.
