Reliance no exception to perpetual slump

31 Jan 2013

Indian conglomerate Reliance Industries closed a $800m perpetual bond on Tuesday, only the second time an Asian issuer has convinced investors to buy a bond without a maturity or a coupon step-up. But investors and rival bankers questioned the structure, and the bond quickly traded down in the secondary market.

The issuer priced the perpetual non-call five year bond at par to yield 5.875%, making its return to the dollar market after a 16 year absence. The deal was only the second senior true perpetual from an Asian issuer in dollars, following Cheung Kong Holdings’ transaction earlier ...

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