E-Paper
Reliance Capital raises Rs 2,000 cr via debentures
Reliance Capital, a part of Anil-Ambani led Reliance Group, on Tuesday said it has raised Rs 2,000 crore (about $300 million) through private placement of secured, redeemable non-convertible debentures for a period of 5 years and 10 years respectively.
Reliance Capital, a part of Anil-Ambani led Reliance Group, on Tuesday said it has raised Rs 2,000 crore (about $300 million) through private placement of secured, redeemable non-convertible debentures for a period of 5 years and 10 years respectively.
The issue size offered was Rs 1,000 crore ($150 million) with an option to retain oversubscription, by way of greenshoe option, of up to Rs 1,000 crore. The company said the issue was fully subscribed, including the greenshoe option, and will be listed on BSE.
Debentures are financial instruments which carry a fixed rate of interest that is paid to the debenture holders. It is considered as a form of debt.
“The funds will be used to refinance our existing debt and also grow our lending businesses. Our debt equity remains at a conservative 1.7, amongst the lowest in the NBFC sector. We will continue to maintain a healthy asset liability mix, and provide optimally priced funds for our high growth lending businesses,” said Reliance Capital ED and group CEO Sam Ghosh.
The secured redeemable debentures offer an annual coupon rate of 8.9% for 5 years, and 9% for 10 years.
The issue was rated AAA by two rating agencies – Credit Analysis and Research Limited and Brickwork Ratings India.
