ADAG likely to raise $3 bn overseas fund
Anil Dhirubhai Ambani Group is likely to raise debt overseas in the near future, according to sources close to the development. The quantum of money to be raised is likely to be around $2.5-$3 billion (Rs 10,000 crore-Rs 12,000 crore).
The group had recently raised almost Rs 12,000 crore through an initial public offering and has major investment plans. It is also undertaking a buy back of shares in one of its companies, Reliance Energy Ltd.
The funds are likely to be raised at a high rate of interest, sources said. When contacted over phone and email, an ADAG spokesperson responded that they would be able to answer queries on the subject only on Wednesday.
An investment-banking source said: “The process for raising debt is on. The negotiations have almost been completed.” Though the names of the banks could not be ascertain, investment bankers said, ADAG is in talks with Citi, Stanchart and Merril Lynch for anchoring the deal.
Amitabh Jhunjhunwala, vice chairman of Reliance Capital Ltd, is now traveling overseas and may be working on this round of fund-raising, sources said. According to sources close to ADAG, part of the fund would be used for the routine capital expenditure requirements of the group companies. The remaining would be for the inorganic growth plans.
The group has a capital requirement of over Rs 80,000 crore for the next few years. Reliance Power, the newly formed entity alone has a requirement of Rs 40,000 crore over the next five-eight years for the development of various power projects. Reliance Communication has a plan of investing Rs 20,000 crore. Reliance Energy, now re-named as Reliance Infrastructure, is building various infrastructure projects. It has a requirement of over Rs 10,000 crore.