RIL raises USD 800 million through 10-year bonds at lowest rate
Reliance Industries Ltd (RIL) on Tuesday said it has raised $800 million by selling 10-year bonds in the first offering since Moody’s last week raised India’s sovereign rating after 14 years.
By : migrator
Update: 2017-11-21 19:23 GMT
Mumbai
According to a Mukesh Ambani-led RIL release here, the bonds, priced at 3.66 per cent, were the lowest coupon ever achieved by an Indian corporate for a 10-year issuance, the company. “The notes have been priced at 130 basis points over the 10-year US Treasury Note, at a price of 100 to yield at 3.667 per cent,” it said.
M&A value sinks 55% to $6.2 bn in September quarter: EY
Meanwhile, M&A deal value has more than halved to $6.2 billion during the September quarter from $13.7 billion in the year-ago period. But, volume rose to 252 deals from 234 deals in the same period year-ago, according to an EY report.
During the quarter, inbound deal value came down to $441 million from $3.6 billion, while steady increase (6.4 per cent) in inbound volume showed investors’ continuous focus on opportunistic acquisitions, the report said. “Outbound activity remained almost flat in terms of both volume and value (39 deals totalling to $304 million),” it added.
Sector-wise, technology led the deal activity, both in terms of value and volume with 33 deals totalling to $3.8 billion, followed by financial services, recording 32 deals with a disclosed value of $291 million. Another sector which has been continuously evolving is professional services, wherein companies were seen making acquisitions for expansion. These acquisitions also allowed them to explore new age digital channels to build capabilities in a disruptive environment, the report noted.
Meanwhile, cross-border M&A activity remained muted during the quarter with total deal value declining 80.5 per cent year-on-year, primarily led by lesser big-ticket inbound investments.
SALIENT FEATURES
- Bonds priced at 3.66 pc is lowest coupon ever achieved by an Indian corporate for a 10-year issuance from Asia, (excluding Japan) since the global financial crisis.
- Notes priced at 130 basis points over the 10-year US Treasury Note.
- Fixed interest of 3.66 per cent pa, with interest payable semi-annually in arrears.
- Notes oversubscribed over 1.6 times across 90 accounts.
RIL to use the proceeds
- To refinance existing debt of $12 bn (Rs 75,000 cr) on its books.
- To redeem its existing $800 mn 5.875 pc senior perpetual fixed rate unsecured notes pursuant to the terms of such notes.
The Moody’s upgrade rub-off
- RIL too has been assigned a ‘Baa2’ grade.
- RIL successfully concluded a swift intra-day execution to capitalise on the market window.
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