RIL Announced Pricing of Reopening of Guaranteed Senior Notes
OREANDA-NEWS. February 24, 2012. Reliance Industries Limited ("RIL") today announced that its wholly-owned subsidiary Reliance Holding USA, Inc. priced a USD 500 million reopening of its existing 5.400% Guaranteed Senior Notes due 2022 (the "Additional Notes"). The Additional Notes will be consolidated and form a single series with the USD 1,000 million 5.400% Guaranteed Senior Notes due 2022 (the "Notes") and will be fully and unconditionally guaranteed by RIL.
The transaction was approximately 7.5 times over-subscribed with an order book aggregating USD 3.73 billion from high quality investor accounts. This transaction priced through secondaries with support from nearly 213 accounts in Asia, Europe and the
The Additional Notes priced at 325 basis points over the 10-year US Treasury Note, at a price of 101.018% to yield 5.267%. The Additional Notes will bear fixed interest of 5.400% per annum, with interest payable semi-annually in arrears. Reliance Holding USA, Inc. will apply the net proceeds to fund its ongoing capital expenditure, to make business investments, to refinance its existing debt and for general corporate purposes.
In terms of geographic distribution, the Additional Notes were distributed 31% in Asia, 19% in Europe and 50% in the
Mr. V. Srikanth, Joint Chief Financial Officer of RIL, commented, "This is a very successful reopening following a landmark bond offering concluded recently. We are delighted to see the strong demand from long term real money accounts and sovereign owned funds across Asia, Europe and the
Barclays Capital, Citigroup Global Markets Inc., and The Hongkong and Shanghai Banking Corporation Limited acted as joint bookrunners and lead managers.
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