Reliance Industries Ltd on Wednesday said that it has issued and allotted on private placement basis the fourth tranche of unsecured non-convertible redeemable debentures. The issue size of Rs 5,000 crore contains 50,000 unsecured non-convertible debentures of the face of Rs 10,00,000 each. The rating agencies CRISIL, ICRA and CARE have awarded high investment grade rating of ‘AAA’ to the issue with a stable outlook which is subject to timely payment of interest and principal amount.
“The net proceeds of the issue will be utilized inter-alia for refinancing of existing borrowings and/or for any other purpose in the ordinary course of business,” RIL said in the statement. The debentures are proposed to be listed on BSE. Investors can redeem the (PPD – Series D) debentures at par value at the end of the fifth year from the date of allotment i.e. 8 November 2022. The company has fixed a coupon rate of 7.17% per annum payable annually on the outstanding PPD series D at the end of every year from the date of allotment, which turns out as Rs 71,700 (at a coupon rate of 7.17%).
In July 2017, Reliance Industries telecom company Reliance Jio launched a rights issue of shares to raise Rs 20,000 crore. Notably, Reliance Jio has already seen massive investments and commitments worth just shy of Rs 2 lakh crore. Earlier in April, Reliance Industries proposed to raise its capital expenditure on Reliance Jio by Rs 18,000 crore in that quarter itself, adding to the Rs 1.79 lakh crore that it had already put into the venture thus far. Reliance Jio had said that it would add another 100,000 towers to the existing network of 100,000 mobile towers.