Reliance in cash chase

Mumbai, May 19: Reliance Industries Ltd (RIL) today said it has raised $200 million by selling Formosa Bonds in Taiwan.

These are bonds that are issued in Taiwan, but are denominated in a currency other than the new Taiwanese dollar.

The Mukesh D. Ambani-flagship in a statement said, the debt, bought primarily by the Taiwanese life insurance companies, offers investors a fixed interest rate of 5 per cent, payable half-year.

It also added that the funds raised would be used for the company's ongoing capital expenditure.

This is the first such sale by an Indian issuer.

"These notes, denominated in the US dollars, have been issued primarily to the Taiwanese life insurance companies and are proposed to be listed on the Taipei Exchange (formerly known as GreTai Securities Market)," RIL said.

According to Reliance, the 20-year notes are the longest tenor Formosa Bond issuance by a corporate out of Asia.

The bonds will also have an annual call option at par starting June 5, 2020.

While Deutsche Bank AG and HSBC Holdings Plc were the joint bookrunners, Morgan Stanley was the structuring agent.

Meanwhile, Hunkemöller, the European lingerie brand, announced an exclusive long-term franchise agreement with Reliance Brands Ltd, a part of RIL Group.

Reliance Brands will bring Hunkemöller to India by setting up independent standalone stores across major Indian cities by 2015-16.

RIL Brands said with a clear focus on international growth, Hunkemöller extended its international operations by adding India to the portfolio of franchise markets.

Reliance Industries Limited (RIL)