RIL sells 10-year bond at 3.66%

‘Lowest coupon ever for 10-year bond’

A man walks past a Reliance Industries Limited sign board installed on a road divider in the western Indian city of Gandhinagar January 17, 2014. Indian energy conglomerate Reliance Industries reported a nearly flat profit of 55.11 billion rupees ($895 million) for the December quarter but beat analyst estimates, helped by stable margins in its main refining business. REUTERS/Amit Dave (INDIA - Tags: BUSINESS ENERGY)

Reliance Industries has raised $800 million by selling 10-year bonds in the global markets to refinance its debt, the first such offering since Moody’s raised India’s sovereign ratings.

The bonds were priced at 3.66%, the lowest coupon ever achieved by an Indian corporate for a 10-year issuance, Reliance said in statement, adding that the proceeds would be used to redeem its existing $800 million 5.875% senior perpetual fixed rate unsecured notes.

RIL has borrowed heavily in the last two years to fund its telecommunications roll-out.

“This refinancing transaction... helped us achieve substantial savings in interest cost over the life of the notes,” said V. Srikanth, joint CFO, RIL.