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RIL raises $200 million through Formosa bonds in Taiwan

Reliance Industries on Tuesday said it has raised USD 200 million by selling so-called Formosa bonds in Taiwan, Asia's hottest bond market.

New Delhi: Reliance Industries on Tuesday said it has raised USD 200 million by selling so-called Formosa bonds in Taiwan, Asia's hottest bond market.

This is the first such sale by an Indian issuer.

The debt, bought primarily by Taiwanese life insurance companies, offers investors a fixed interest rate of 5 percent, payable half-year, the company said in a statement.

"These Notes, denominated in US dollars, have been issued primarily to Taiwanese life insurance companies and are proposed to be listed on Taipei Exchange (formerly known as GreTai Securities Market). Such notes are commonly known as Formosa Bonds," it said.

The 20-year Notes are the longest tenor Formosa Bond issuance by a corporate out of Asia.

"The Notes are being issued at par and will bear a fixed interest rate of 5 percent per annum, with interest payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company," it said.

The bonds will also have an annual call option at par starting June 5, 2020.

"The funds will be utilised for the company's ongoing capital expenditure," the statement said.

Deutsche Bank AG and HSBC Holdings Plc were the joint bookrunners, while Morgan Stanley was the structuring agent.

The senior, unsecured notes due 2035 will be callable at par from June 2020.