Ambani Lowers Capital Cost With Reliance Perpetual: India Credit
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Billionaire Mukesh Ambani’s Reliance Industries Ltd. is cutting its cost of capital after selling dollar-denominated bonds with no maturity, the second such issuance by an Indian non-bank entity.
The nation’s biggest company by market value sold $800 million of undated notes at 5.875 percent, the energy explorer said in a Jan. 29 statement. Reliance’s approximate weighted average cost of debt and equity is 9.7 percent, data compiled by Bloomberg show. Hong Kong-based Cheung Kong Holdings Ltd., controlled by Asia’s richest man Li Ka-Shing, sold $500 million of perpetual debt at 5.375 percent on Jan. 16, the data show.