MukeshAmbani-led Reliance
Industries Limited, a major Indian private conglomerate, yesterday announced
that it has borrowed $225 million through an overseas bond issue. This amount
equals to Rs. 1,468 crore.
The company filed a report at
the Bombay Stock Exchange (BSE) mentioning that it has priced an offering of
USD 225 million, 2.512% on notes due in 2026 guaranteed by the Export-Import
Bank of the United States.
The company also mentioned
that the instance of Export-Import Bank of the United States guaranteeing notes
issuance out of India is first of its kind. The notes will have a fixed
interest of 2.512% per annum. This interest needs to be paid every 6
months.
The principal amount of the
notes also needs to be paid every 6 months. But, the installmentpayment period
for the principal amount will start on 15th July, 2016 and end on 15th
January, 2026.
Reliance
Jio’sbusiness strategies for 4G launch
The
telecom arm of Reliance Industries, Reliance JioInfocomm Limited is making
preparations to roll out its 4G services. Before its commercial launch in
December, this year, the company will offer 4G-enabled mobile phonesin the
second week of September.
Its
retail arm, Reliance Retail, under its consumer electronics brand,
ReConnectwill sell the handsets all over the country. The handsets will be
available in the price range between Rs. 5,000 and Rs. 25,000.
The
handsets will be designed targeting the Indian masses. They will work in
multiple frequencies, whichoffer 4G services in India. These handsets will have
Voice Over Long Term Evolution (VOLTE) technology. This technology will enable
voice to be carried over the internet, unlike in traditional phones. The
company is working to set up a hardware ecosystem and offer affordable handsets
to the masses.
Not
only handsets, Reliance Retail will also be selling Wi-Fi dongles. At the
launch event of ‘Digital India,’ Chairman Ambani announced that his company is
establishing a fresh distribution network. This will let 1.5 lakh small
retailers to sell and service smartphones and devices. Reliance Industries is
also negotiating with 28 leading Original Equipment Manufacturers (OEMs) to
manufacture devices for India. Besides, Ambani assured offtake of these devices,
too.
Experts
say that the handset launch is a predecessor of a soft launch in September. On
a trial basis, the company will launch a minimum of 10 lakh handsets in few
months. In a speech, Ambani mentioned that the company will roll out an
extensive beta launch in coming months. This beta program will “involve
millions of friendly customers across all the markets.” He further said that
the program will get the shape of commercial operations by December, 2015.
Reliance
Jio holds spectrum bands of 2,300 MHz all over the country and 1,800 MHz in 14
regions. Besides, it has also signed a pact with Reliance Communications to
share the latter’s spectrum space of 800 MHz band in all the circles.
Summary
Reliance has announced
that it has raised $225 million (Rs. 1,468 crores) through an overseas bond
issue