Moneylife - Linkedin Moneylife - Facebook Moneylife - Twitter Moneylife - Youtube Moneylife Rss feed
close

Moneylife » Investing » Investing » Reliance Holdings raises $1 billion through 10-yr bonds

Reliance Holdings raises $1 billion through 10-yr bonds

Moneylife Digital Team | 11/02/2012 10:27 AM | 

 

Reliance Holdings USA Inc, a wholly-owned subsidiary of RIL, sold 5.4% senior, unsecured notes maturing in February 2022 at 345 basis points more than similar-maturity Treasuries. The Notes have been priced at 345 basis points over the 10-year US Treasury Note

New Delhi: Reliance Industries (RIL) Friday said its US subsidiary has raised $1 billion selling 10-year dollar-denominated debt, the largest overseas bond sale from an Indian company in nine months, reports PTI.

Reliance Holdings USA Inc, a wholly-owned subsidiary of RIL, sold 5.4% senior, unsecured notes maturing in February 2022 at 345 basis points more than similar-maturity Treasuries, the company said in a press statement here.

“The Notes have been priced at 345 basis points over the 10-year US Treasury Note, at a price of 99.481% to yield 5.468%,” it said.

Reliance Holdings will use the proceeds to fund its ongoing capital expenditure, to make business investments, to refinance its existing debt and for general corporate purposes.

“The transaction was well executed despite the short time-window and a volatile global environment,” RIL joint chief financial officer V Srikanth said.

Bank of America Merrill Lynch, Barclays Capital, Citigroup Global Markets Inc, The Hongkong and Shanghai Banking Corporation and UBS AG, Singapore Branch acted as joint book-runners and lead managers.

“In terms of geographic distribution, the Notes were distributed 31% in Asia, 17% in Europe and 52% in the United States,” the statement said.

The issue, which is the first corporate bond from India in 2012 and first since August 2011, was over-subscribed nearly 8 times with an order book aggregating $7.8 billion.

The bonds were distributed to high quality fixed income accounts: 65% to fund managers, 15% to insurance funds, 10% to banks, 5% to private banks and 5% to government agencies.

 


Post Comment

Comment

1 Comment
karpakarajan

karpakarajan 2 years ago

incredible; hope the source of the funds is traced;

Reply »Link » Report abuse
X
Daily Newsletter

1,00,000 Readers

Follow Moneylife
DNL facebook icon DNL linked in icon DNL twitter icon DNL youtube icon DNL rss icon
Moneylife Magazine

What's your say?

Can you depend on mainstream media to report economic scams?
Yes
No
Can't Say
 
Enter Code : secure code
    change code
VOTE

What you said

Do rising prices of vegetable affect your monthly budget?

Thanks for casting your votes! View Previous Polls

Join Over 100,000 Awesome Readers

  1. News that Mainstream media does not always cover
  2. Views that are bold and unbiased
  3. Reports that focus on your interests as consumer, investor & citizen