Oil securitisation dues pre-paid - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Oil securitisation dues pre-paid

Jun 14, 1999

Reliance Industries has exercised its 'call option' on the Rs 12 bn Panna-Mukta-Tapti (PMT) oil and gas receivables and pre-paid its entire dues to lenders ICICI and SBI. The pre-payment exercise was prompted by easy liquidity conditions and firming up of crude oil prices in the international markets. A Relaince spokeperson has confirmed the pre-payment. The above move will result in reduction of around 300 basis points in interest costs for Reliance on Rs 12 bn which works out to Rs 3-4 m every year. The deal worth Rs 12 bn and having a maturity of 15 years was picked up by ICICI (Rs 10 bn) and SBI (Rs 2 bn). Banking sources informed the ET that the pre-payment was done through a combination of internal accruals and money raised in domestic markets at lower rates.

Though the pre-payment sounds good for Relaince, it means bad news for ICICI and SBI who will now be straddled with Rs 12 bn of funds in an increasingly narrow high quality borrower's market.

Reliance had raised the quasi-equity PMT financing in an innovative deal last year. Inder the deal, the future PMT oil and gas receivables from Indian Oil and Gas Authority of India for a period of 15 years - who has committed to buy the proceeds from operations - has been assigned to a trust set up by ICICI by Reliance. Against this, Reliance received an upfront payment of RS 12 bn from the trust, which then issued monthly pass-through certificates to the investors (ICICI and SBI) at a discounted price.

Equitymaster requests your view! Post a comment on "Oil securitisation dues pre-paid". Click here!

  

More Views on News

RELIANCE IND. Announces Quarterly Results (2QFY21); Net Profit Down 7.1% (Quarterly Result Update)

Nov 4, 2020 | Updated on Nov 4, 2020

For the quarter ended September 2020, RELIANCE IND. has posted a net profit of Rs 105 bn (down 7.1% YoY). Sales on the other hand came in at Rs 1,162 bn (down 23.6% YoY). Read on for a complete analysis of RELIANCE IND.'s quarterly results.

RELIANCE IND. 2019-20 Annual Report Analysis (Annual Result Update)

Aug 5, 2020 | Updated on Aug 5, 2020

Here's an analysis of the annual report of RELIANCE IND. for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of RELIANCE IND.. Also includes updates on the valuation of RELIANCE IND..

RELIANCE IND. Announces Quarterly Results (1QFY21); Net Profit Up 27.8% (Quarterly Result Update)

Jul 31, 2020 | Updated on Jul 31, 2020

For the quarter ended June 2020, RELIANCE IND. has posted a net profit of Rs 129 bn (up 27.8% YoY). Sales on the other hand came in at Rs 912 bn (down 43.5% YoY). Read on for a complete analysis of RELIANCE IND.'s quarterly results.

RELIANCE IND. 2018-19 Annual Report Analysis (Annual Result Update)

Jul 25, 2019 | Updated on Jul 25, 2019

Here's an analysis of the annual report of RELIANCE IND. for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of RELIANCE IND.. Also includes updates on the valuation of RELIANCE IND..

More Views on News

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

A Stock with 700% Return Potential Comes with Additional Payoffs (Profit Hunter)

Apr 15, 2021

Narayana Murthy was one of the first unicorn founders to get the backing of this entity...

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

A Unique Sector for Short-Term Profits (Fast Profits Daily)

Apr 12, 2021

This ignored sector could deliver big short-term profits.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

RELIANCE IND. SHARE PRICE


Apr 19, 2021 09:35 AM

TRACK RELIANCE IND.

  • Track your investment in RELIANCE IND. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

RELIANCE IND. 8-QTR ANALYSIS

COMPARE RELIANCE IND. WITH

MARKET STATS