Reliance Industries’ (RIL) dollar-denominated bond issue worth $1 billion on Wednesday was priced at 4.249%, 240 bps above the 10-year treasury notes, according to a company release. The release said the notes will bear fixed interest of 4.125% per annum with the interest payable semi-annually in arrears.
This is the lowest coupon rate by an Asia ex Japan corporate issuer in the ‘BBB’ category for a 10-year issuance with a size of $1 billion or more.
RIL claims it is the largest oil and gas deal since the last RIL-guaranteed bond in 2012. The company also said that this is the first 10-year issuance in the oil and gas sector out of Asia ex Japan since July 2014.
The release said the issue was distributed 31% in Asia, 25% in Europe and 44% in the US and is believed to have attracted interest across geographies.
In terms of investor distribution, the notes were distributed to high quality fixed income accounts with 62% going to fund managers, 7% to sovereign wealth funds, 18% to insurance companies and pension funds and 13% to banks, said the release.
Bank of Amercia-Merrill Lynch, Citigroup Global Markets, HSBC and Standard Chartered bank acted as the joint global cordinators while Barclays Capital, Deutsche Bank and JP Morgan acted as joint global coordinators.
“We are happy to see participation from repeat investors being supplemented by new high quality investors including central banks and real money accounts,” said V Srikanth, joint chief financial officer of RIL. The funds will be utilised for the ongoing capital expenditure according to the release.