MUMBAI, July 15: Reliance Industries is launching the first-ever sterling bond offering by an Indian corporate. The petrochem giant is planning to raise a œ100-million, 10-year facility in the UK market.

The lead mangers to the issue - Hongkong and Shanghai Banking Corporation (HSBC), Merill Lynch and United Bank of Switzerland (UBS) - will kickstart roadshows on Wednesday in London and the pricing will be fixed early next week. "The price of the sterling bond will be linked to the 10-year UK gilts," an industry source said.

At present, the 8.50 per cent gilt maturing in 2007 is trading at 7.162 per cent. The offering will set a new benchmark for Indian entities who intend to raise money in the UK market. According to corporate treasury sources, the Reliance sterling offer comes at a time when the pound is set to gain against all major currencies.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.