InvestorQ : Why is Reliance planning to raise $5 billion from the global markets?
Rutuja Nigam made post

Why is Reliance planning to raise $5 billion from the global markets?

Answer
image
4 months ago
Follow

Reliance Industries is planning to raise around $5 billion via foreign currency denominated bonds. However, this entire sum will be used to only repay and retire the existing borrowings so this will not make any impact on the debt ratios of the company. These funds will be raised via senior unsecured Dollar-denominated fixed-rate notes and the total sum of $5 billion is likely to be raised in tranches.

Since the proceeds will be largely used to refinance existing borrowings, there is not much of a balance sheet impact that is anticipated. Markets are expecting the dollar bonds to be issued at 110-130 basis points spread over the US Treasury rates. Reliance also has major capex plans in the next few years. It has plans for big investments in new energy business, digital and retail expansion. New energy alone will see $10 billion spent in 3 years.

20 Views