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RIL’s subsidiary raises $500 million through a Guaranteed Senior Notes issue

27 Feb 2012 Evaluate

Reliance Industries’ wholly-owned subsidiary, Reliance Holding USA, has raised another $500 million through a bond (Guaranteed Senior Notes) issue. Earlier on February 10, RIL using the similar route had raised $1 billion.

The Guaranteed Senior Notes due by 2022 bear a fixed interest of 5.4 per cent a year, with interest payable semi-annually in arrears. Further, the issue was priced at 325 basis points over the 10-year US Treasury Note to yield 5.267%.

The present transaction was over-subscribed approximately 7.5 times with an order book aggregating $3.73 billion. This transaction was done through nearly 213 accounts in Asia, Europe and the US. About 50% of the subscription came from US market, while 31% was from Asia and 19 per cent from Europe.

Further, the company is expected use the net proceeds to fund its ongoing capital expenditure, refinance its existing debt and for general corporate purposes.

Reliance Industries Share Price

1365.10 21.65 (1.61%)
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Company Name CMP
Reliance Industries 1365.10
Indian Oil Corp. 145.85
BPCL 312.05
HPCL 370.95
MRPL 183.20
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