RIL to raise US$150 mln through overseas bond issue

21-Mar-06

To fund the capital expenditure of its refining and petrochemicals businesses, Reliance Industries Ltd (RIL) proposes to raise US$150 million (Rs 660 crores) though an overseas bond issue. The bonds would represent an unsecured pari passu obligation of RIL. In its rating report, Standard & Poor views RIL's capex plan with concern, due to the potential downturn in the petrochemical cycle, reduced demand for refined products, and uncertainties related to the company's upstream gas business. However, RIL's current financial position, strong liquidity and access to financial resources mitigate some of these risks.