RIL gains after company hits debt market with $800-mn issue

Reliance Industries gained over 2% on Tuesday and was the top index gainer after the company hit the overseas debt market with a $800-million bond sale programne as it seeks to pare a portion of its high cost debt that stands at over Rs 2.14 lakh crore.

The stock rose as much as 2.26% to Rs 939 on the BSE.

The development came after Moody’s upgraded India’s sovereign rating last week from the lowest investment grade Baa3 to a notch higher at Baa2.

Meanwhile, rating agency Moody's on Monday signed a Baa2 rating to the proposed unsecured bond sale by RIL, reported PTI.

The bonds will rank pari passu with RIL's other existing and future unsecured and unsubordinated obligations, Moody's said assigning the Baar rating.

It can be noted that for the September quarter, RIL, which has a market capitalisation of close to Rs 6 lakh crore, had a cash pile of Rs 77,014 crore and a debt of Rs 2,14,145 crore, up from Rs 1,96,601 crore in the previous quarter.

Adani Abbot Point Terminal, and Rural Electrification Corporation (REC) also launched bond issues overseas on Monday in order to reduce their finance costs.

Reliance Industries Limited (RIL)