RIL issues Rs 2,500 crore NCDs at a coupon of 6.95%

Reliance Industries Ltd said on Tuesday that the company has issued the fifth tranche of privately placed debentures worth Rs 2,500 crore after the company proposed the same on Thursday last week. The issue size of Rs 2,500 crore contains

25,000 unsecured redeemable non-convertible debentures of face value Rs 10,00,000 each. The PPD — Series E shall be redeemed at par at the end of third year and 1 month from the date of allotment i.e. 14 December 2020.

The debentures have a coupon rate 6.95% per annum which will be payable annually on the outstanding PPD series E at the end of every year from the date of allotment. At a coupon rate of 6.95%, debenture holder will be entitled to get an amount of Rs 69,500 at the end of each year till 2020. The third instalment of interest amount would be paid on 16 November 2020 and the redemption amount of Rs 10,00,000 would be paid on 14 December 2017, RIL said in an exchange filing.

“Pursuant to the authority given by the shareholders of the company at the Annual General Meeting held on 21 July 2017, it is proposed to make an offer for the issuance of non-convertible debentures (NCDs Series E) (5th Tranche) on private placement basis on Tuesday, 14 November 2017 aggregating Rs 2,500 crore, to be listed on the stock exchanges,” RIL said in an exchange filing.

“The net proceeds of the issue will be utilised inter-alia for refinancing of existing borrowings and/or for any other purpose in the ordinary course of business,” RIL added. Shares of Reliance Industries ended 1.26% higher at Rs 886.2 on BSE today. In the intraday trade, the stock jumped 2.21% to hit a day’s high of Rs 894.5.

The announcement came in just after the oil-to-telecom conglomerate RIL yesterday said that it had issued and allotted the fourth tranche of unsecured non-convertible redeemable debentures. RIL raised Rs 5,000 crore from the fourth tranche of PPD — Series D debentures.

Reliance Industries Limited (RIL)