Reliance Industries is in talks to raise as much as 15,300 crore (USD 2.25 billion) in what could be one of the biggest offshore debt issues by an Indian corporate as the energy-to-retail conglomerate seeks to replace existing high-cost borrowings as well as build a war chest for its aggressive expansion strategy in telecom.

At least 10–12 investment bankers are involved and marketing roadshows are expected to start soon in North America, Europe, the Middle-East, and Asia. The money is proposed to be raised through external commercial borrowings (ECBs). It may be a syndicated loan. Securities may be priced 90–100 basis points over the London Interbank Offered Rate (Libor). The US 12-months Libor is now at 1.70 percent. A basis point is one-hundredth of a percentage point.

The company raised 30,000 crore last year through a rights issue in two parts, in January and September. Earlier this month, the company said it would raise another 30,000 crore through a rights issue of optionally convertible preference shares to invest in Reliance Jio Infocomm, the telecom unit.

Bharat exn


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