Reliance Industries Limited and Facebook deal
The Facebook deal is a huge deal for Reliance(RIL) If reliance uses the cash inflows recieved from U.S based tech giant Facebook.Inc Debt can be reduced by 80% ( source-MONEY CONTROL) RELIANCE INDUSTRIES has a long term debt rating of AAA, RIL has issued in two parts :- 1.Floating rate of raising Debt Rate of interest = REPO Rate 4.4% +280bps = 7.2% Rs.4500 crores 2.Floating rate of raising Debt Rate of interest = Fixed rate = 7.2% Rs.4000 crores TOTAL DEBT RAISED BY RELIANCE INDUSTRIES LTD Rs.8500 crores The debt taken by the company has spark the leverage in BALANCESHEET of Reliance Industries Limited.
