The Hindu Business Line : Reliance closes $300-m US pvt debt issue

The company launched a $200-million issue in the US Traditional Private Placement market led by Banc of America Securities, ABN Amro and HSBC. It was able to substantially oversubscribe the transaction, resulting in an increase in size to $300 million. It carries an interest rate of 6.5 per cent.

The senior unsecured notes have been placed for a period of 10 and 12 years with US insurance companies, marking the first transaction in the Regulation D market since the early 90s from Asia. The company had, earlier this year, also successfully closed the first ever 10-year Euro yen issue by an Asian corporate.

Mr Alok Agarwal, Chief Financial Officer, RIL, said: "We are very pleased with the strong investor response to our inaugural US private placement. We are particularly pleased that this transaction afforded us the opportunity to establish a partnership with some of the foremost institutional investors in the US."

The issue was purchased by a group of 10 large US insurance companies, led by AIG, AEGON and ING.

The transaction was structured to include bullet maturities of 10 and 12 years, which served to lengthen the company's overall debt maturity schedule and to further diversify its sources of funding. The company intends to use the proceeds of the financing for capital expenditure.

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