In­dia’s Re­liance In­dus­tries said to plan re­fi­nanc­ing as obli­ga­tions ma­ture

Muscat Daily - - BUSINESS -

Mum­bai, In­dia - Re­liance In­dus­tries Ltd plans to re­fi­nance a sig­nif­i­cant por­tion of about US$12bn of bor­row­ings that ma­ture over the next three years and may sell bonds to re­pay the debt, ac­cord­ing to com­pany ex­ec­u­tives with knowl­edge of the mat­ter.

In­dia’s largest com­pany by mar­ket value will re­pay some of the debt com­ing due, mostly bonds and in­ter­est, the of­fi­cials said. Re­liance’s re­pay­ments from 2018 through 2020 will be its big­gest for any pre­vi­ous three- year pe­riod and in­clude about US$8.14bn of term loans, US$3.52bn of bonds and a US$300mn re­volver loan, ac­cord­ing to data com­piled by Bloomberg. It also has about US$1.65bn of in­ter­est pay­ments, the data show.

Re­liance’s bor­row­ings have bal­looned over the past five years as the group in­vested in build­ing its tele­com busi­ness, a pet coke gasi­fi­ca­tion unit and in ex­pand­ing petro­chem­i­cals ca­pac­i­ties.

“Re­liance be­ing the big­gest com­pany from In­dia with solid fi­nances, there would be no chal­lenges for the com­pany in re­fi­nanc­ing its debt,” said Raj Kothari, head of trad­ing at Jay Cap­i­tal Ltd

Re­liance has suf­fi­cient cash though it won’t use it to re­pay ma­tur­ing debt as the com­pany’s credit rat­ings and strong fi­nances en­able it to raise funds at com­pet­i­tive rates, the peo­ple said. A Re­liance spokesman did not re­spond to an email seek­ing com­ment.

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