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• The country’s biggest company by market capitalization, Reliance Industries is now looking to raise up to $500 million by selling bonds to foreign investors. A top official of a foreign bank has confirmed the news and has stated that RIL has appointed Citigroup, HSBC and Barclays Capital as the merchant bankers to the offering. Recently, the Mukesh Ambani-led company raised $1 billion in a similar bond offering – 3.45% above treasury notes."Reliance must be raising money at cheap rates when the going is good," said a top official of another leading investment bank.
• "Liquidity in the euro zone is much better, and the company may be wanting to raise money before the crisis deepens there," he said.Bankers have stated that Indian companies, such as Reliance, are looking at raising monies via foreign bonds than through loans more now. With interest rates in India being higher than other developed markets, companies are encouraged to opt for foreign bond issues.So far, the rupee has gained about 7.7% in 2012 and it is likely it may strengthen against the US dollar, bringing down the cost of dollar-denominated bonds. "There is a lot of appetite for papers of top-rated Asian companies from overseas investors especially with the liquidity conditions easing," said the head of investment banking of a foreign brokerage's Indian unit. "For them, 5-6% rate for good papers is easy money," he said.

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