Reliance Energy to Privately Place Debt

Reliance Energy Ltd has announced that the Company successfully completed a transaction of private placement of debt with the US financial institutions. The US$ 150 million transaction was closed on November 20, 2006 with an investor group of 8 leading US financial institutions.

The placement was in form of senior unsecured notes with a maturity of 10 years. This is the first successful placement by an utility Company from India and provided an opportunity for the Company to extend its debt maturity as also its sources of funding.

The proceeds from the financing will be utilized for meeting capital expenditure requirements of its various projects.

ABN Amro was the sole arranger for the transaction.

Source : Equity Bulls

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