RIL to raise Rs 9,000 cr via NCD issue on April 16 to refinance rupee debt
To cash in on cheap funds flooding the debt market through the targeted long-term repo operations route, Reliance Industries (RIL) plans to raise Rs 9,000 crore through sale of non-converticle debentures (NCDs) for refinancing its existing high-cost rupee debt.
The most cash-rich company, RIL is also one of the most indebted corporate entities in India, with a debt pile of over Rs 1.54 trillion as of March 2020.
According to an exchange filing, RIL is launching a Rs 9,000-crore NCD issue on April 16 and the proceeds from the debt sale will be used to repay existing rupee debt.
The issue has two components — a Rs 4,500-crore fixed-rate tranche and an equal tranche with floating rate. Both the issues are offering a coupon of 7.20 per cent-4.40 per cent of repo with a spread of 2.80 per cent.
