JOIN USReliance Industries (RIL) has priced its $750-million bond offering at 262.5 basis points over the 30-year US Treasury Note, at a price of $98.865 to yield 4.948 per cent.
This is the second such offering by RIL in recent days. The company had raised $1 billion at 240 basis points over the 10-year US Treasury Note, at a price of $98.998 to yield 4.249 per cent late in January.
The notes will be denominated in US dollars, and will bear fixed interest of 4.875 per cent per annum, with interest payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company, RIL said, adding that the funds will be utilised for its ongoing capital expenditure
This is the lowest ever coupon achieved by an Asian private corporate issuer for a 30-year issuance and the first ever single tranche of 30-year deal by a private corporate issuer out of Asia, RIL said.
Attractive rates
“We are delighted to continue to lead the way for Asian corporates to access long-term financing at attractive rates. Like our previous issuances, we were able to efficiently execute through an intra-day window, despite volatility in asset markets,” RIL joint chief financial offer V Srikanth said.
The notes have been assigned a rating of BBB+ by S&P and Baa2 by Moody’s, RIL said, adding that the notes were over 3.07 times over-subscribed across 167 accounts.
In terms of geographic distribution, the notes were distributed 47 per cent in Asia, 8 per cent in Europe and 45 per cent in the United States.