RIL to raise $1.5 billion to refinance old loans

Reliance Industries (RIL) plans to raise $1.5 billion to refinance its old loans. RIL will raise the loan in two tranches - $1.36 billion in US dollars and $140 million in Japanese yen.

The maturity of the bonds would be 43 months from the date of issue. The company will conduct road shows in Singapore on October 5, Taipei on October 7 and in Tokyo on October 9.

RIL has hired ANZ, Bank of Abu Dhabi, SMBC, StanChart, UOB, Westpac, Bank of Nova Scotia, Barclays, BNP, Bank of America Merrill Lynch, among other banks, for the issue.

According to a Bloomberg report, the pricing has been fixed at Libor plus 84.5 basis points for dollar offering. Repayment will be in three instalments beginning the 36th month.

RIL has been raising funds to finance its investments to expand its petrochemical business and launch its fourth generation (4G) telecom services.

This August, RIL had raised $225 million (Rs 1,468 crore) through overseas bond issue due in 2026, guaranteed by the Export-Import Bank of the United States. The company had priced an offering of $225 million, 2.512 per cent on notes due in 2026 guaranteed by the Export-Import Bank of the United States.

RIL said it is the first time Export-Import Bank of the United States guaranteed notes issuance out of India.

In May, the company had raised $200 million by selling long-term bonds to investors in Taiwan, becoming the first company in Asia to tap this market. RIL had raised funds by issuing 20-year notes at a coupon rate of 5 per cent. Deutsche Bank AG, Taipei Branch and HSBC Bank (Taiwan) Ltd managed the issue.

In January, RIL raised $1 billion through sale of 10-year bonds to investors across Asia, Europe, and the US.

Over the past three years, RIL has raised around $10 billion in overseas borrowings.