Conglomerate Reliance aims to raise $5 billion in US Debt
- ByTejika Bajaj | January 3, 2022
Mukesh Ambani’s multibillion dollar conglomerate, Reliance Industries Ltd expressed that it plans to raise a sum of $5 billion in a dollar-denominated debt through debt funding.
Sources reveal that the conglomerate is likely to utilize the funds raised specifically to refinance its pre-existing borrowings.
It has further been noted that the oil-to-telecom conglomerate has gotten an approval by its board of directors for a proposal for fixed rate notes which in turn could be issued over multiple phases/tranches.
The details on the use and source of finance still remain undisclosed by the company professionals. However, various prominent news agencies have pointed out that the funds would be used majorly to refinance the existing debt liabilities that Reliance Industries accounts for from a group of international investors.
The conglomerate might face a liquidity crunch as many of its debt borrowing instruments are set to mature within the time duration of three to four months.
The offering would be one of the largest offshore raising made by any Indian company in terms of debt borrowing that to in a single go. Through this debt fund, Reliance Industries believes that it will move towards becoming a debt-neutral company.
This announcement comes just a week after the renewable energy arm of the conglomerate acquired UK based battery ion developer company.
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