India’s oil-to-telecoms giant, Reliance Industries, is set to sell a Schuldschein (pronounced schult-shine) debt instrument worth $170 million in the German-centred debt market, making it the first Indian company to tap this route for fundraising.
The proceeds of the 10-year tenure issue will be used for capital expenditure by the Mukesh Ambani-led corporate giant.
Bankers said Schuldschein is an alternative way to raise funds instead of loans or bonds and deals can run from $12 million to more than $1.13 billion. These instruments include tranches of different maturities and currencies and investors are spread across the world. Steel major ArcelorMittal, Abu Dhabi-based Etihad Airways and German auto major Volkswagon are among the other top companies which have raised funds via this route.
