Reliance Industries Ltd's (RIL) last syndicated offshore borrowing was a $1.45 billion dual-currency financing completed in 2020, comprising a $1.1 billion 3.5-year piece and 38.45 billion yen five-year portion. Last year, Jio obtained a $750 million five-year new-money club loan for capital expenditure. The $3 billion borrowing is also split equally for Reliance and Jio, with the latter's portion being its first non-recourse loan.Īlso read: Broker’s call: Reliance Industries (Buy) Nearly a third-$927 million-of the allocations went to 19 Taiwanese banks that dominated the final list of lenders in the syndicate while another eight from Japan took $276.36 million combined. The decision to raise another $2 billion stems from the overwhelming response from the market as lenders remain hungry for the blue-chip group that has not been active in the syndicated loan market in recent years. ![]() The size of the add-on is two-thirds that of the original $3 billion loan-quite large and unusual in Asian loan markets for what is effectively an unplanned greenshoe option. ![]() MLAB refers to Mandated Lead Arranger and Book Runner. "This was visible from the remarkable response to the $3 billion loan, but also from the reception the $2 billion add-on has already received," a senior banker said.Įighteen banks, including the 15 senior MLABs of the $3 billion loan and others joining in the senior phase, are expected to form the syndicate for the $2 billion add-on, which is split equally for Reliance and Jio, and is likely to be wrapped up by the end of the month.Īlso read: Reliance Industries’ creditors, shareholders to meet on May 02 on demerger of financial services business The oil-to-telecom conglomerate is one of the most sought-after credits from India and enjoys deep banking relationships. The sources said the blowout response was not surprising considering the momentum the $3 billion borrowing had already generated in the senior phase by mid-January when it was launched into general syndication.
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