RIL issues India’s first Formosa bonds, raises $200 mn in Taiwan
19 May 2015
Reliance Industries Limited (RIL) today announced the issue of $200 million 5 per cent senior unsecured callable notes due in 2035, the first ever Formosa Bond issuance by an energy company globally.
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.
These notes are also the longest tenor Formosa Bond issuance by a corporate out of Asia and the first ever out of India, RIL said in a release.
Formosa bonds are notes issued in Taiwan but denominated in a currency other than the New Taiwan Dollar. They are issued by the Taiwan branches of publicly traded overseas financial institutions and must have a credit rating of BBB or higher to be traded.
The notes are being issued at par and will bear a fixed interest rate of 5 per cent per annum, with interest payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company.
The notes will also have an annual call option at par starting 5 June 2020.
RIL plans to utilise the funds for the company's ongoing capital expenditure.
Deutsche Bank AG, Taipei branch and HSBC Bank (Taiwan) Limited acted as joint bookrunners and lead managers on the transaction. Morgan Stanley & Co International plc acted as the structuring agent on the transaction.
