33.7 C
Kuwait City
August 25, 2019
Gulflance
Home » Reliance Industries’ (RIL) Stake Sale To Saudi Aramco Credit Positive: Moody’s
NDTV Business

Reliance Industries’ (RIL) Stake Sale To Saudi Aramco Credit Positive: Moody’s

Moody’s estimates that the two transactions together will reduce RIL’s net debt by $16 billion dollars.

Singapore: 

The proposed sale by Reliance Industries Limited (RIL) of a 20 per cent stake in its oil-to-chemicals (O2C) business to Saudi Arabian oil company Aramco will reduce RIL’s debt leverage which is a credit positive, Moody’s Investors Service said on Wednesday.

In addition, RIL has announced it will sell a 49 per cent stake in its fuel marketing business in India to BP plc for $1 billion.

“The stake sales are in line with RIL’s commitment to reduce its net debt to zero by March 2021 and reflect its commitment to maintaining a strong financial profile despite significant capital spending over the last five years,” said Vikas Halan, Moody’s senior vice president.

Moody’s estimates that the two transactions together will reduce RIL’s net debt by $16 billion dollars and lower its leverage — as measured by net debt/EBITDA — by 1.2 times from 3.2 times for the fiscal year ending March 2019.

The two transactions follow the sale of its telecommunications tower business last month to Brookfield Asset Management Inc for Rs 25,200 crore.

The company has also transferred its optical fibre assets to an infrastructure investment trust and expects to complete the sale of those assets to a strategic investor by March 2020.

Further, the company announced its intention to sell stakes in its digital services and retail businesses to strategic investors, and also monetise some of its real estate and financial assets.

Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24×7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

Source link
Click here to read more news from @ndtv

Related posts

HBKU student works at UN Data Fellows Programme

Gulf Times

Redmi 8, Redmi 8 Pro Specifications, Design Tipped by US FCC Listing

NDTV

Trump raises tariffs on Chinese goods as trade war escalates – News

KT Mobile

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please spend a minute

Gulflance Poll

Which is worst social media?
Vote Now
close-link
Sign-up for exclusive content. Be up to date with Gulflance
Subscribe
Subscribe
close-image

You're currently offline