In order to pay off debts, Reliance Industries (RIL) has raised INR 7,000 crore by selling-off three-year bonds. With this move, the conglomerate company has incremented 5-10 points in respect of cost that the company was incurring three weeks back, as reported by the Indian daily news, The Economic Times.
Barclays, ICICI Bank, Axis Bank and Nomura have bought the bonds. Further, it was revealed that Axis Bank has procured bonds around INR 4,000 crore, according to the anonymous sources of the Indian daily news, The Economic Times.
The bonds of RIL have produced 8.3 per cent along with three-year maturity. This fund phase of RIL has been considered the largest mop-up until now, expressed dealers.
Funds could be used both for refinancing and expansions as the corporate giant prepares for a new round of (capital) deployments beginning next fiscal year, apprised an anonymous person to the Indian daily news, The Economic Times.
The distinction between benchmark government and corporate bonds has decreased by 15 to 20 basis points in the last couple of weeks. This infers RBIs move to cut the rate in the last month has begun impacting on the borrowing costs.
In Q3 FY18, Reliance Industries (RIL) has crossed the 10,000 crore marker to become a first private organization to earn the highest net profit in quarters.