Reliance Mops Up Rs 200 Crore Via Ncds

Reliance Industries Ltd (RIL) has mopped up at least Rs 200 crore from the market by privately placing two separate non-convertible debenture (NCD) issues of Rs 100 crore each this month.

ICICI Bank was the sole subscriber to one of the issues. The NCD was of five-year maturity carrying a coupon of 8.65 per cent.

The interest payment on the bond was on an annual basis. The issue spread of 125 basis points over the sovereign paper is among the finest spreads at which any triple A (AAA) rated corporate has borrowed five-year money in the recent past.

The other issue was of 4 years and 10 months maturity. The coupon of the bond was 8.70 per cent.

 

ABN Amro, the lead arranger of the issue, took Rs 25 crore in its books itself while the rest part was placed with the other banks. The issue had a put option after one year at 8.10 per cent.

The papers are rates 'AAA' (triple A) by Credit Rating Information Services India Ltd (Crisil). ICICI Bank is the largest player in the corporate debt market and accounts for more than one-fourth of the secondary market trades. It has been providing two way quotes in a number of companies to deepen the corporate bond market.