BankAm securities arm places $300-million US debt for RIL
31 October 2006
Mumbai: Reliance Industries Ltd. has raised $300 million through a private placement of debt papers with US insurers. The private placement was co-led by investment bank and brokerage firm Banc of America Securities with the parent BankAm acting as the administrative agent for the issue.
The senior unsecured notes have been placed for a period of 10 and 12 years with US insurance companies, marking the first meaningful transaction in the Regulation D market since the early 1990s from Asia.
The company plans to plans to use the funds for capital expenditure and the long-dated notes serve to lengthen RIL's overall debt maturity schedule and to further diversify its sources of funding.
Reliance Industries owns and operates the world's third-largest oil refinery and is also the world's largest maker of polyester fibre yarn.