![]() ![]() The US dollar portions for RIL and Jio pay interest margins of 121 bp and 128 bp over term SOFR (Secured Overnight Finance Rate), respectively, while the yen pieces offer 58 bp and 65 bp over the Tokyo Overnight Average Rate (Tonar). The yen tranches paid top-level all-ins of 66.50 bp and 76.50 bp for the two borrowers, respectively. DBS is global coordinator for the USD 2 billion add-on and was also in that role for the USD 3 billion borrowing, which paid top-level all-in pricing of 146 bp and 156 bp for the US dollar portions for RIL and Jio, respectively. ![]() Mizuho Bank, MUFG and Sumitomo Mitsui Banking Corp underwrote the yen tranche for Jio's loan, with Credit Agricole also lending alongside the three Japanese mega banks on the yen portion for RIL's borrowing. ANZ, Bank of America, BNP Paribas, Credit Agricole CIB, Citigroup, DBS Bank, First Abu Dhabi Bank, HSBC, Scotiabank, Standard Chartered Bank, State Bank of India and United Overseas Bank were the senior MLABs on the US dollar tranches for both borrowers. In the post-FSMA environment, the roles are no longer as straightforward because the investment banks are now also corporate lenders. The USD 3 billion borrowing signed last week is Reliance group's largest syndicated loan and is split into USD 1.15 billion and 48.78 billion yen (USD 380 million) tranches with an average life of 5.25 years for RIL, and five-year portions of USD 1.2 billion and 41.81 billion yen for Jio. The loan arranger would identify prospective loans, screen offers, and negotiate with the lenders on behalf of the corporate borrower. The yen loan offered an all-in pricing of around 78 bp - 81 bp, while the US dollar tranche paid an all-in of 101.5 basis point (bp) based on a margin of 79 bp over Libor and an average life of 3.25 years. Reliance Industries Ltd's ( RIL) last syndicated offshore borrowing was a USD 1.45 billion dual-currency financing completed in 2020, comprising a USD 1.1 billion 3.5-year piece and 38.45 billion yen five-year portion. Last year, Jio obtained a USD 750 million five-year new-money club loan for capital expenditure. ![]() The USD 3 billion borrowing is also split equally for Reliance and Jio, with the latter's portion being its first non-recourse loan. ![]()
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