Reliance to raise up to $3 billion from offshore bonds: Report

RIL is expected to use the proceeds from the sale to refinance loans maturing in the next three to four months to save on interest costs or extending maturities

By Akshay Chinchalkar

Reliance Industries Ltd. is finalizing plans to raise up to $3 billion (Rs 22,354 crore) via an offshore bond issue, the Economic Times newspaper reported.

The bond sale, which is expected to be launched in the next two weeks, is poised to become the single largest borrowing by an Indian company, the paper said. Bonds covered under the program will be investment grade with 10-year and 30-year maturities, it said.

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The company is expected to use the proceeds from the sale to refinance loans maturing in the next three to four months to save on interest costs or extending maturities, the paper said.

While the exact pricing of the bonds has not been made available, there are expectations the 10-year debt may be offered at about 110 to 130 basis points over the US Treasury benchmark, and the 30-year debt may be at 130 to 140 basis points over similar-maturity Treasuries, the Economic Times said. The size of the offering is also likely to be increased if investor response is encouraging, the paper said.

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