Reliance Industries, the Indian conglomerate controlled by billionaire Mukesh Ambani, raised $4 billion from a three-tranche US dollar bond issuance, the country's largest foreign currency bond deal that will help it to refinance existing debt.
The company raised $1.5bn in a 10-year tranche, $1.75bn in a 30-year tranche and $750 million in a 40-year deal, Reliance said in a statement to the Bombay Stock Exchange, where its shares are traded.
“The support received from the marquee international capital market investors is reflective of the strength of our underlying businesses with established growth platforms across energy, consumer and technology as well as [the] robustness of our balance sheet,” said Srikanth Venkatachari, joint chief financial officer at Reliance Industries.
“This issue continues the tradition of Reliance being a sophisticated and innovative issuer across the capital structure.”
The bond issuance was three times oversubscribed with orders mainly from investors in Asia and the US. The issuance had a peak order book averaging $11.5bn, according to the company. BoFA Securities, Citigroup, and HSBC acted as joint global co-ordinators on the transaction.
Sovereign borrowers, government-related entities and corporate issuers are trying to tap into international debt markets to take advantage of low-interest rates. A number of companies from the GCC issued bonds recently to secure new funding.
The latest bond issuance from Reliance comes as the company plans to expand its operations globally to boost growth. Last year, it formed Reliance International Limited, a wholly owned subsidiary in the UAE that will trade oil, petroleum, petrochemical products and agricultural commodities.
It is also setting up a joint venture with the Abu Dhabi Chemicals Derivatives Company, better known as Ta’ziz, to develop a major chemicals project at the Ta’ziz industrial chemicals zone in Ruwais.
Other recent investments by the company include $144m in US energy storage company Ambri along with other investors including Paulson & Co and US billionaire Bill Gates.
It also bought a stake in a high-end fashion brand owned by Indian designer Manish Malhotra last year as part of its expansion plans.
The biog
Favourite Emirati dish: Fish machboos
Favourite spice: Cumin
Family: mother, three sisters, three brothers and a two-year-old daughter
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
About Takalam
Date started: early 2020
Founders: Khawla Hammad and Inas Abu Shashieh
Based: Abu Dhabi
Sector: HealthTech and wellness
Number of staff: 4
Funding to date: Bootstrapped
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Book%20Details
%3Cp%3E%3Cem%3EThree%20Centuries%20of%20Travel%20Writing%20by%20Muslim%20Women%3C%2Fem%3E%3Cbr%3E%3Cstrong%3EEditors%3A%20%3C%2Fstrong%3ESiobhan%20Lambert-Hurley%2C%20Daniel%20Majchrowicz%2C%20Sunil%20Sharma%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EIndiana%20University%20Press%3B%20532%20pages%3Cbr%3E%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Company%20profile%20
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EElggo%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20August%202022%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Luma%20Makari%20and%20Mirna%20Mneimneh%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Education%20technology%20%2F%20health%20technology%3Cbr%3E%3Cstrong%3ESize%3A%3C%2Fstrong%3E%20Four%20employees%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-seed%3C%2Fp%3E%0A
