Reliance Industries Ltd. (RIL) has raised $200 million through issuance of 20-year long-term bonds in Taiwan at a fixed interest rate of 5 per cent per annum with interest payable semi-annually in arrears. The funds will be utilised for the company’s ongoing capital expenditure.
“These notes, denominated in U.S. dollars, have been issued primarily to Taiwanese life insurance companies and are proposed to be listed on Taipei Exchange (formerly known as GreTai Securities Market),” RIL said in a statement. Such notes are commonly known as Formosa Bonds. This is the first ever Formosa Bonds issued to any energy company globally, and RIL is the first company from India to issue such bonds.
The notes are being issued at par, and will also have an annual call option at par starting June 5, 2020, the company said.
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Deutsche Bank AG, Taipei Branch and HSBC Bank (Taiwan) Ltd. acted as joint book runners and lead managers on the transaction. Morgan Stanley & Co. International plc. acted as the structuring agent on the transaction.