RIL raises $225 million through overseas bond issue
Reliance Industries Ltd (RIL) has raised $225 million through a 10-year-term overseas bond issue guaranteed by the Export-Import Bank of the United States. The Mukesh Ambani-led company has issued the debt bond with a fixed interest rate of 2.512%, which will be matured in January 2026. “The Notes will bear a fixed interest rate of 2.512% per annum, with interest payable semi-annually. The principal amount of the Notes will be payable in consecutive semi-annual installments commencing on July 15, 2016 up to the maturity on January 15, 2026,” the company said in a statement on Thursday. According to RIL, this is the first time the US Ex-Im Bank has guaranteed the issuance of Notes by a private sector energy firm. The Notes are being issued at par with all “unsecured and unsubordinated obligations” of the company and the interest will be payable semi-annually. “The principle amount of the Notes will be payable in consecutive semi-annual installments commencing on July 15, 2016 up to the maturity on January 15, 2026," the statement said, adding that the fund will be utilised to offset the credit taken by the RIL for the capital expenditure at its Jamnagar oil refinery complex. “The proceeds of these fixed rate Notes will be utilised by the company to replace a portion of the Ex-Im Bank guaranteed floating rate loan which was availed to finance capital expenditure at the company's Jamnagar site in India,” the statement said.
August 20, 2015 | 3:30pm IST.
to success.