In another bid to refinance high-cost foreign currency debt, Reliance Industries is once again accessing the overseas market.

According to banking sources, the company has given the mandate to Credit Suisse First Boston and ABN Amro to raise dollar-denominated bonds worth around $750 million.

While pricing could not be ascertained as the issue was yet to hit the market, the bonds carry a tenure of five years. The sources said RIL would be the first Indian corporate to get the benefit of the country's rating upgrade from Moody's to investment grade.

Reliance spokesperson could not be contacted for immediate response. The company is also negotiating with bankers to raise loans through external commercial borrowing (ECB) route worth $680 million, again for a staggered tenure of three, four and half and five years.

Bankers added that the ECB loans would be a mix of dollar and Japanese yen denominated currency. Sources added that the company was expecting to save around 30-35 basis points through the refinancing. However, the ECB loan is still attracting bids and pricing is yet to be finalised.

Both the bond and loan through ECB route do not require the approval of the ministry as it is meant for refinancing of the foreign currency debt. Sources added that these debt were raised in 2001 at 130-140 basis points over London inter bank offer rate (Libor).

Bankers added that ECB of $150 million raised by Indian Oil Corporation for a period of 18 months in the recent past will act as a benchmark. This loan was raised at a rate of 68 basis points over Libor with Credit Suisse First Boston, Citibank and Standard Chartered Bank as the loan syndicators.

Besides, the borrowing plans have come to the market at a time when India outlook has been upgraded to investment grade.

While this will help in better pricing, the fact that foreign investors are looking up to India will endorse it further.

Reliance Industries is expected to launch the $750 million eurobond around the end of this month. It had earlier proposed to float the issue in November 2003, but preferred to postpone it as investment gets subdued during end of the year.