By Cristal Cody
Chicago, Jan. 6 – Reliance Industries Ltd. placed $4 billion of notes (Baa2/BBB+) in three tranches on Wednesday, according to a press release and more details from a market source.
The company sold:
• $1.5 billion of 2 7/8% senior notes due 2032 at Treasuries plus 120 basis points, 30 bps low to talk in the 150 bps area;
• $1.75 billion of 3 5/8% senior notes due 2052 at Treasuries plus 160 bps, 30 bps low to talk in the 190 bps area; and
• $750 million of 3¾% senior notes due 2062 at Treasuries plus 170 bps, 35 bps low to talk in the 205 bps area.
The order book for the three tranches peaked at around $11.5 billion from over 200 accounts with more than half of distributions going to Asia with a focus on fund managers.
The Regulation S and Rule 144A notes were offered to overseas investors.
The company claims it is the largest ever foreign currency bond issue from India.
The joint global coordinators and joint bookrunners for the offering are BofA, Citigroup and HSBC.
Joint bookrunners also include Barclays, JPMorgan and MUFG.
Proceeds would be used mainly to refinance existing borrowings.
Mumbai, India-based Reliance is a petrochemical and retail conglomerate.
| Issuer: | Reliance Industries Ltd.
|
| Amount: | $4 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA, Citigroup, HSBC (joint global coordinators), Barclays, JPMorgan and MUFG
|
| Passive bookrunners: | ANZ, BNP Paribas, Credit Agricole CIB, DBS Bank Ltd., Mizuho Securities, SMBC Nikko, Standard Chartered Bank and State Bank of India, London Branch
|
| Trade date: | Jan. 5
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2032 notes
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 12, 2032
|
| Coupon: | 2 7/8%
|
| Spread: | Treasuries plus 120 bps
|
| Price talk: | Treasuries plus 150 bps area
|
|
|
| 2052 notes
|
| Amount: | $1.75 billion
|
| Maturity: | Jan. 12, 2052
|
| Coupon: | 3 5/8%
|
| Spread: | Treasuries plus 160 bps
|
| Price talk: | Treasuries plus 190 bps area
|
|
|
| 2062 notes
|
| Amount: | $750 million
|
| Maturity: | Jan. 12, 2062
|
| Coupon: | 3¾%
|
| Spread: | Treasuries plus 170 bps
|
| Price talk: | Treasuries plus 205 bps area
|
|
|
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