Mukesh Ambani-controlled Reliance Industries last night priced an $800 million senior perpetual bond after attracting an order book of $3 billion.
The market backdrop towards perpetuals has soured in recent weeks, with Cheung Kong’s perpetual shedding several points in secondary and Chinese developer KWG Property pulling its perpetual due to weak demand.
Despite this, the company succeeding in closing the first fixed-for-life perpetual which meant that it offered no step-up in coupon or rate reset out of Asia. Such bonds are difficult to sell as there is no incentive for the borrower to call the bonds when rates rise.
So the fact that investors...