Reliance Industries Plans ₹12,500 Crore Bond Issue At 7.47%

The Reliance Industries bond issue will raise ₹12,500 crore through five-year rupee notes carrying an annual coupon of 7.47%, according to five merchant bankers cited by Reuters. The fundraising would be the largest single-tranche bond issue by a rated company since November 2023.

The Mukesh Ambani-led company is expected to invite bids from investors in the week ending 18 September. The issue will mark Reliance Industries’ return to the domestic rupee bond market after almost three years.

Why Is Reliance Returning To The Rupee Bond Market?

The company last tapped the local bond market in November 2023, when it raised ₹20,000 crore. That issue was the largest local-currency debt sale by an Indian non-financial company.

The latest Reliance Industries debt fundraising plan comes as domestic bond yields have fallen, making rupee funding more attractive for Indian companies. The five-year government bond yield has dropped 33 basis points since the beginning of June.

Bankers said the decline has been supported by large dollar inflows under subsidised schemes offered by the central bank. Inflows linked to the non-resident dollar deposit scheme have helped pull local yields lower.

At the same time, higher US Treasury yields have increased the cost of raising funds in dollars. That has made domestic borrowing a relatively cheaper option for Indian companies such as Reliance.

Banks To Arrange And Partly Subscribe To Bonds

Large private-sector banks are expected to act as arrangers for the proposed Reliance bond issue. The banks are also likely to subscribe to part of the bonds, according to the bankers.

Reliance Industries is also considering a longer-term borrowing option. The company is in discussions with bankers and investors about a possible 10-year bond issue, although details have not been finalised.

The bond plan comes as Reliance continues to operate across businesses, including oil, telecom, and retail. For now, the Reliance bond issue 2026 is centred on the five-year ₹12,500-crore fundraising plan, with investor bidding expected later this month.

The bankers spoke on condition of anonymity because they were not authorised to discuss the transaction publicly. Reliance Industries had not responded to Reuters’ request for comment outside business hours.

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