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