Reliance Capital Mops Up Rs 2,000 Crore Via Debentures

New Delhi: Reliance Capital on Tuesday said it has raised Rs 2,000 crore ($300 million) through private placement of non-convertible debentures (NCDs) for expanding lending business and refinancing existing debt.

The issue size offered was Rs 1,000 crore with an option to retain over-subscription up to Rs 1,000 crore aggregating up to a shelf limit of Rs 2,000 crore.

The issue was fully subscribed, including the green-shoe option, and will be listed on the BSE.

"The funds will be used to refinance our existing debt and also grow our lending businesses," Reliance Capital ED and group CEO Sam Ghosh said in a statement.

"Our debt equity remains at a conservative 1.7, among the lowest in the NBFC sector. We will continue to maintain a healthy asset liability mix and provide optimally priced funds for our high growth lending businesses."

Reliance Capital, a part of Anil-Ambani led Reliance Group, has raised the funds through private placement of secured redeemable NCDs for 5 years and 10 years.

Of the total, Rs 1,500 crore was mobilised with a 10-year maturity and the remaining Rs 500 crore with a 5-year maturity.

The secured redeemable NCDs offer an annual coupon rate of 8.9 per cent for 5 years and 9 per cent for 10 years.

At 2:58 p.m., shares in Reliance Capital were trading 2.15 per cent higher at Rs 556.30 apiece on the BSE, whose benchmark Sensex index was up 1.36 per cent.