Reliance Prices $800 mn Senior Unsecured Notes Due 2027

Reliance Industries Limited (RIL) has priced an offering of $800 million 3.667 percent senior unsecured notes due 2027.

The notes have been assigned a rating of BBB+ (Standard & Poor's) and Baa2 (Moody’s)

Transaction highlights

1. Lowest coupon ever achieved by an Indian corporate for a 10-year issuance

2. Tightest ever spread over US Treasury for an Indian entity for a 10-year issuance

3. Tightest ever spread over US Treasury for a 10-year BBB corporate issuance from Asia exJapan since global financial crisis

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 percent. The notes will be denominated in US dollars, and will bear fixed interest of 3.667 percent per annum, with interest payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company.

The company will use the proceeds to redeem it's existing US$ 800 million 5.875 percent senior perpetual fixed rate unsecured notes pursuant to the terms of such notes.

The notes were over 1.6 times over-subscribed across 90 accounts. In terms of geographic distribution, the notes were distributed 62 percent in Asia, 13 percent in Europe and 25 percent in US.

In terms of investor distribution, the notes were distributed to high quality fixed income accounts: 57 percent to fund managers, 26 percent to insurance companies and pension funds; 11 percent to banks and 6 percent to public sector.

“This refinancing transaction was well received by high-quality investors across asset managers, insurance companies and banks and helped us achieve substantial savings in interest cost over the life of the notes. Issued against the backdrop of the upgrade of the country ratings by Moody’s, we successfully concluded a swift intraday execution to capitalize on the market window. We are delighted to have issued 10-year bonds at the lowest coupon ever for an Indian corporate,” said V Srikanth, joint chief financial officer of RIL.

BofA Merrill Lynch, Citigroup and HSBC acted as joint global coordinators. Barclays, JP Morgan and Standard Chartered Bank acted as active joint bookrunners.

ANZ, BNP PARIBAS, Credit Agricole CIB, DBS Bank Ltd, Deutsche Bank, Mizuho Securities, Morgan Stanley, Scotiabank, SMBC Nikko and Societe Generale Corporate & Investment Banking acted as passive bookrunners.