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RIL’s US Unit Raises $1 Billion

  • The proceeds will be used by RIL’s US subsidiary to fund capital expenditure towards the exploration and development of shale gas, to refinance existing debt and for general corporate purposesReliance Industries Ltd (RIL), India’s largest company my market value, said on Friday that its subsidiary Reliance Holding USA, Inc. had raised $1 billion through a sale of bonds.The proceeds will be used by RIL’s US subsidiary to fund capital expenditure towards the exploration and development of shale gas, to refinance existing debt and for general corporate purposes.
  • The bonds with a fixed interest of 5.4% per annum will be ”fully and unconditionally guaranteed by RIL,” the company said in a statement to the stock exchanges. ”The Notes have been priced at 345 basis points over the 10-year US Treasury Note.” One basis point is one-hundredth of a percentage point.These are the first corporate bonds sold by by an Indian company in 2012 and the first since August, the RIL statement said.V.Srikanth, joint chief financial officer of RIL, said in the statement that high quality global investors showed strong interest and the transaction was well-executed despite a volatile global environment and a short time-window.Bank of America Merrill Lynch, Barclays Capital Plc, Citigroup Global Markets Inc., The Hongkong and Shanghai Banking Corporation Ltd and UBS AG acted as joint book-runners and lead managers to the bond sale.

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