Reliance Industries Ltd (RIL), which is sitting on a cash pile of nearly Rs. 73,000 crore, is on a debt-raising spree again and has mopped up $1.5 billion (Rs. 7,650 crore) through an overseas bond sale progamme over the weekend, two people with the direct knowledge of the development said.
With the latest debt raising, the Mukesh Ambani-led oil, gas, petrochemicals and retail giant has raised $4 billion so far this year, with the first two being a $1.5-billion issue in February and another $1 billion issue in May.While RIL spokesperson refused to comment, the banks which snapped up the issue could not be reached.
Of the $2.5 billion raised by RIL (which still is one of the least leveraged large corporates in the country with less than 0.50% debt-equity ratio) earlier, the proceeds from first issue of $1.5 billion were mopped up by its US subsidiary for its shale gas programme, while the other was meant for its Jamnagar complex expansion.
The current funds will also be used to finance its capital expansion programme as planned.
The latest unsecured syndicated loan has two maturities.
While $1 billion are a six-year US dollar money, the rest $500 million are a 7.25-year money, according to sources, who did not reveal the pricing of the issue. This is the first longest tenor unsecured syndicated debt raised by an Asian issuer this year. The instrument, sold in the North American, European, Asian and Australian markets, was snapped by as many as 28 international and domestic banks.