Reliance Industries Ltd. raised Rs 20,000 crore by selling 10-year bond at 7.79% coupon rate on Thursday, making it the largest rupee-denominated in the corporate bond market by any private company, according to people with knowledge of the matter.
The issue received 101 bids worth over Rs 27,000 crore, and the cut-off yield for the 10-year partly paid non-convertible debenture stood at 7.79%, the people mentioned above told BQ Prime on the condition of anonymity. BQ Prime has learned that the Life Insurance Corporation of India has bid for Rs 10,000 crore of RIL's total debenture issue.
The first pay-in date for the NCD issue is on Friday, followed by a second pay-in date set on Dec. 15.
The fundraising amount includes the base issue of Rs 10,000 crore, with an alternative to retain the greenshoe option up to Rs 10,000 crore.
The entire net proceeds of the debenture issue will be utilised for refinancing existing borrowings maturing this year. The other way to deploy these funds would be towards ongoing capital expenditure requirements, investments, or lending to domestic subsidiaries where RIL holds a majority stake. Up to 25% of the net proceeds could also be used for "any other purpose in the ordinary course of business", according to the company.
As of Sept. 30, RIL's outstanding debt stands at Rs 2.95 lakh crore.
The maturity date of this bond is Nov. 10, 2033, and will be redeemed in a phased manner the same year.
RIL's last bond issuance was in April 2020 when it raised Rs 2,795 crore through bonds maturing in five years at a coupon rate of 7.40%.
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