Reliance Industries (RIL) has raised $1 billion (nearly Rs 5,000 crore) by selling foreign currency bonds to investors abroad through its arm, Reliance Holding USA. The bonds carry a coupon of 5.4 per cent, payable semi-annually and unconditionally guaranteed by RIL.
The transaction was subscribed nearly eight times. Nearly 400 accounts in Asia, Europe and America participated in the issue. Citigroup Global Markets, Bank of America Merrill Lynch, Barclays Capital, Hongkong & Shanghai Banking Corporation and UBS AG acted as joint book runners and lead managers to this issue. Reliance Holding USA will use the net proceeds to fund its ongoing capital expenditure, finance investments, refinance existing debts and for general corporate purposes. Analysts said since the funds raised in America would be used locally, there’s a natural hedge against currency fluctuations. Hence, RIL preferred to opt for the foreign currency bond issue instead of using its own reserves.
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