Reliance raises Rs 20,000 cr at 7.79% interest rate
Reliance Industries has raised Rs 20,000 crore in the largest bond issue by a non-financial Indian firm, paying 7.79 per cent interest rate, the company said on Friday. The coupon rate is 40 basis points more than the government's borrowing cost.
The company's 10-year bonds were sold at a coupon rate of 7.79 per cent, the firm said in a stock exchange filing.
«We wish to inform that the company has today allotted 20,00,000 secured, redeemable, non-convertible debentures (NCDs) of the face value of Rs 1,00,000 each, issued on private placement basis,» it said.
The base issue size was Rs 10,000 crore, with an option to retain oversubscription (green shoe option) of up to Rs 10,000 crore.
The company's bond issue earlier this week received bids worth Rs 27,115 crore, with major interest from insurance companies.
Of this, it retained Rs 20,000 crore.
The debentures will be secured by «all moveable plant and machinery (both present and future) of the company, located at Hazira and Dahej manufacturing divisions of the company,» it said, adding they shall also be secured by all movable fixed assets as well as movable fixed assets at the two sites.
Reliance plans to list the NCDs on BSE and the National Stock Exchange.
The NCDs will be redeemed in four tranches, each representing 25 per cent of the face value, on February 10, 2033, May 10, 2033, August 10, 2033, and the final redemption date on November 10, 2033.
