#Analytics Reliance Industries Eurobond Issuance Analysis – J | Cbonds Global

#Analytics
Reliance Industries Eurobond Issuance Analysis – Jan 2022

Reliance Industries Ltd (RIL) has raised a record USD 4 billion in multi-tranche long- dated Eurobond offerings in January 2022.
The company issued 10-20-40 year USD bonds. The proceeds from the bond offering will be used to refinance existing borrowings.
Newly issued bonds are set to be listed on the Singapore Stock Exchange.
The company has a total Eurobond debt of USD 9.22 billion through 22 outstanding
bonds.
S&P assigns RIL BBB+ with a Stable outlook.
Reliance has more than USD 220 billion market capitalization.

Business Profile
Reliance Industries Ltd (RIL) is the largest private-sector corporation in India. The company has expanded from a textiles and polyester player to become integrated across energy, materials, retail, entertainment, and digital services. RIL manufactures petrochemicals, synthetic fibers, fiber intermediates, textiles, blended yarn, and polyester staple fiber. The company also owns a petroleum refinery cum petrochemical complex in Jamnagar, India, that produces a wide range of products such as gasoline, superior kerosene oil, and liquefied petroleum gas. Under the "Jio" brand, the company offers telecom and digital services to 429.5 million subscribers in India. Strategic investment in Jio Platforms Ltd by Facebook and Google alongside other investors totaled USD 21 billion (33% stake). Through Reliance Retail, its diversified product portfolio includes groceries, fashion & lifestyle, consumer electronics, and connectivity across 12,201 stores. Investments from Silver Lake Partners, KKR, GA, TPG, GIC, and others amount to a USD 6 billion, 10% stake, in Reliance
Retail.

Reliance Industries Bonds – Issuances
In January 2022, RIL successfully conducted a USD 4 billion bond issuance, India's largest- ever foreign currency issuance. The 10-year bond issue's size was USD 1.5 billion, the coupon was semi-annual at 2.875%, and the spread was observed at 120 bps levels over the US treasury (UST). The 30-year and 40-year bond issue size was USD 1.75 billion and USD 750 million, the coupon was semi-annual at 3.625% and 3.75%, and the spread 160 bps and 170 bps levels over the UST. 30-year and 40-year issuances had the lowest coupon by a private sector BBB corporate from Asia ex-Japan and the first-ever 40-year tranche raised by a BBB private sector corporate from Asia ex-Japan. The process saw participation from over 200 investors from Asia, Europe, and the United States and robust demand, with a three-fold oversubscription at USD 11.5 billion. The bonds were distributed 53% in Asia, 14% in Europe, and 33% in the United States, and investors' shares stood at 69% to fund managers, 24% to insurance companies, 5% to banks, and 2% to public institutions. US treasuries' yields went up post-issuance. Later, the newly issued RIL bond yields and credit spreads both increased. Currently, the 2.875% Jan 2032, 3.625% Jan 2052, and 3.75% Jan 2062 bonds are quoted at a discount to issuance price of 3.10%, 3.88%, and 3.95, with a yield to maturity and credit spreads observed at 134 bps, 166 bps, and 179 bps.

Read the full report here