Reliance Industries is raising up to US$500 mln (Rs 2,701 crore) through perpetual bonds from investors abroad to fund its petrochemical expansion and oil and gas exploration activities in India. As per Business Standard, Reliance is expected to price the bonds at 6%, which can be bought back by the company after five years. The company has planned expansion of its petrochemicals complex, which will cost it close to US$10 bln. Perpetual bonds do not have any maturity date.
The company is sitting on a cash pile of Rs 75,000 crore and is using the low interest rates in the markets to cut costs of its debt, a banker advising Reliance said. The banker said if the response is good, the company may look at the option of increasing the size of the bond issue. Soon after its Q3 results, Reliance said that it expected KGD6 gas volumes to weaken till FY-15, pending completion of booster compressors at D1-D3 fields. Reliance is drilling a development well in the satellite fields and plans to file an integrated field development plan (IFDP) in the current quarter. When developed, IFDP will drive new volumes after FY-16.