INSUBCONTINENT EXCLUSIVE:
this financial year as it expands its consumer businesses, according to people familiar with the matter.
The billionaire Mukesh Ambani-led
company will raise funds through loans and bonds, mostly in the Indian currency, the people said asking not to be named as they are not
authorized to speak to the media
Of this, the refining-to-retail conglomerate already has shareholder approval to raise as much as 200 billion rupees through non-convertible
new telecom venture and its traditional petrochemicals business
Ambani will invest this year to roll out fiber-based broadband services and on acquisitions, including the purchase of telecom assets from
The company has total borrowings of about 2.2 trillion rupees, more than half of which is due to be repaid by 2022, according to data
compiled by Bloomberg.
Net liabilities will probably increase this year, mostly due to the Reliance Communications transaction, before
falling in the financial year ending March 2021 as cash flows improve, said Somshankar Sinha, a Mumbai-based analyst at Jefferies India
rules.
There are investments planned for the fiber-based broadband services, JioGigaFiber, that will launch across 1,100 cities in August
under the umbrella of telecom unit Reliance Jio Infocomm Ltd., the people said
In addition, the conglomerate will spend on acquiring apparel brands and opening new retail outlets, one of the people said.
Issuance ModeA
while actively investing cash reserves that reached 781 billion rupees last financial year
Other income accounted for about a fifth of its profit before tax in the 12 months to March 31 -- much of it earned by investing the cash
The company has a BBB+ credit score from SP Global Ratings, two levels higher than the Indian government.
Reliance returned to the
local-currency bond market after a more-than- seven-year absence last year, raising 200 billion rupees via six offerings between August and
The conglomerate priced some notes maturing in three years or slightly more in the range of 6.78 percent to 7.07 percent -- lower than the
7.15 percent average yield on top-rated three-year corporate bonds during the same period.
Unit Reliance Jio on Tuesday sought bids to raise
financials and top-notch rating, it can raise funds from the debt markets at much lower levels as compared to other private Indian
Reliance is cash rich and among the safest credits in India, he said.
