MUMBAI, July 25: Reliance Industries Ltd (RIL) privately placed $150 million in debt (Rs 540 crore) on Thursday with a group of European institutional investors at a coupon rate of 7.625 per cent. The instrument has 30-year maturity with an innovative rolling put structure consisting of an initial put option in the 10th year followed by put options at five-year intervals.

With this, the petrochemicals giant has raised $405 million (Rs 1450 crore) from international investors within 72 hours -- between July 22 and July 24. On July 22, it raised œ 150 million ($ 255 million) -- a 10-year facility -- in the UK market.

According to RIL, the deal was arranged by Lazard Credit Capital and underwritten and lead managed by Credit Agricole Lazard Bank, UK.

Since it was privately placed, the instrument was not rated. The deal, contracted over the phone is a totally unsecured one without guarantees from banks and financial institutions. The deal opened a new market for RIL.

The 30-year deal represents the lowest cost international borrowing for the corporate, the RIL release said. The 149.5 basis points spread paid over the 10-year treasury yield is 25.5 basis points lower than the issue spread of 175 basis points for RIL's 30 put 10 yankee bonds (final maturity 30 years, put option at 10 years) traded in the US markets. The spread (149.5 basis points over 10-year treasury yield) for the private placement deal is also substantially lower than the issue spread of 350 basis points.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.