India’s conglomerate Reliance to raised $3b through overseas bonds

India’s oil-to-retail conglomerate Reliance Industries Limited has been increasing focus on non-conventional business expansions. The company now plans to raise up to $3 billion via overseas bond sales, which would be the largest offshore raising by an Indian borrower in one go, people familiar with the matter told ET. The bond sale is expected to be launched in the next two weeks.
The move, which is debt neutral, will help the company either to save funding cost as much as by 50 basis points or elongate maturities.
The proceeds from the bonds would be used to refinance existing loans and bonds raised from international investors earlier. While international bonds issued 8-10 years ago are maturing early this year, a bundle of loans are coming up for maturities in the next three-four months.
Investors across the globe including from the US can invest in those bonds, which is known as 144A in market parlance. Bonds will be of investment grade.