Reliance Capital redeems commercial papers worth Rs 875 crore

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Mumbai | Published: June 22, 2019 12:43:59 AM

Reliance Capital has redeemed commercial papers (CPs) worth Rs 875 crore over the last two months and reduced its CP portfolio to Rs 75 crore from Rs 950 crore, the company said on Friday.

Ratings agency Icra had revised the rating on the company’s short-term debt programme, comprised CPs of Rs 950 crore, to A4 from A2 on April 26.

Reliance Capital has redeemed commercial papers (CPs) worth Rs 875 crore over the last two months and reduced its CP portfolio to Rs 75 crore from Rs 950 crore, the company said on Friday.

Ratings agency Icra had revised the rating on the company’s short-term debt programme, comprised CPs of Rs 950 crore, to A4 from A2 on April 26. “This is to inform you that the company has redeemed CPs of Rs 875 crore on the respective due dates in the past two months, and the outstanding CP is now only Rs 75 crore, which will also duly be redeemed on its maturity date i.e. July 24, 2019,” Reliance Capital said in a notification to the exchanges. “The ICRA rating will thereupon stand terminated,” the company added.

Last month, Reliance Capital had said it would raise funds by exiting the mutual funds business by selling its stake in Reliance Nippon Life Asset Management (RNAM) to its joint venture partner Nippon Life Insurance of Japan. It had announced a plan to sell its entire stake of 42.88% in RNAM to Nippon Life Insurance and other financial investors and receive approximately Rs 6,000 crore through the sale. Reliance Capital had also said the entire proceeds of the sale would be utilised to reduce its outstanding debt by 33%.

On Monday, Reliance Capital said it sold 10.75% in RNAM for over Rs 1,450 crore in two successive offers and achieved the minimum public shareholding of 25% in RNAM by reducing the promoter stake. Based on this deal and other asset monetisation deals, the company expects to reduce its debt by at least Rs 12,000 crore, or 70%, in FY20.

Shares of Reliance Capital ended at Rs 68.55 on BSE on Friday, 0.72% lower than their previous close.

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