HomeIndiaReliance to raise $5 bn via overseas bonds to retire existing borrowings

Reliance to raise $5 bn via overseas bonds to retire existing borrowings

Billionaire Mukesh Ambani’s Ltd on Saturday said it will raise as much as $5 billion in foreign currency-denominated bonds and use the proceeds to retire existing borrowings.

In a stock exchange filing, the company said the Finance Committee of the company board at its meeting on Saturday approved a “proposal for issuance of senior unsecured US Dollar-denominated fixed-rate notes from time to time, for an aggregate amount up to $5 billion, in one or more tranches”.

“The proceeds from the issuance of the Notes will be utilised primarily for refinancing of existing borrowings, in accordance with the applicable law,” it added.

The bond sale is poised to become the single largest such borrowing by an Indian company.

While the company did not divulge details on either the timing or the pricing of the bonds, it is expected that the 10-year debt may be offered at about 110 to 130 basis points over the US Treasury benchmark, and the 30-year debt may be at 130 to 140 basis points over similar-maturity Treasuries.

Ambani’s firm has unveiled ambitious plans for a foray into the new energy business while rapidly expanding its digital and retail ventures.

It said on Friday that its subsidiary Reliance New Energy Solar Ltd (RNESL) has signed definitive agreements to acquire UK-based sodium-ion battery technology company Faradion for an enterprise value of GBP 100 million.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

- Advertisment -