Stock Market update: Reliance Industries shares up by 1% after raising $4 billion in bonds

The company will use the proceeds to refinance its existing debt and will repay the entire amount by 2032 and 2062.

Shares of Reliance Industries Limited’s (RIL) have jumped up to 1 per cent about 31.55 points in an intra-day trading session at Rs 2458.05 at the NSE after the company has raised $4 billion of bonds issuance by an Indian enterprise, the company said on Thursday.

The company said RIL has raised $1.5 billion for 10 years at an interest rate of 2.875%, $1.75 billion for 30 years at an interest rate of 3.625% and $750 million for a 40-year term at 3.750%. The issue was oversubscribed by three times and will be due for repayment between 2032 and 2062, Reliance said in a filing.

“The kind of support that RIL received from the international capital market investors is reflective of the strength of our underlying business with established growth platforms across energy, consumer and technology as well as the robustness of our balance sheer,” said Srikanth Venkatachari, Joint Chief Financial Officer, Reliance Industries Limited (RIL).

He further added, “The mega issue was the largest debt capital market transaction for RIL and had the tightest credit spreads across each of the long-dated tenors for any corporate in India”. The amount raised by the company has the lowest interest rate for benchmark 30-year and 40-year issuances and is probably the first trance by BBB- rated private sector company from Asia (excluding Japan).

Reliance saw a huge jump in its revenue from operations in Q3 FY22. The company reported a revenue of Rs 1,74,104 lakh crore against Rs 1,44,372 lakh crore in Q2 FY22. Its net profit has risen to Rs 13,680 crore in Q3 FY22 against Rs 12,273 crore in Q2 FY22.

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