Billionaire Mukesh Ambani’s Reliance Industries Ltd. is planning to raise as much as Rs 12,500 crore ($1.3 billion) via local-currency bonds as early as next week, people familiar with the matter said, which would make it the largest listed deal in the market this year.
The company plans to raise the funds through notes due in five years at a coupon of 7.47%, the people said, asking not to be identified as the details are private. Axis Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd. and YES Bank Ltd. are the arrangers to the issuance, the people said.
The offer size is Rs 10,000 crore with a greenshoe option to raise another Rs 2,500 crore, the people said.
Biggest listed bond sale this year
The issuance is set to be the biggest listed bond sale in the domestic debt market this year and also the conglomerate’s first offering since November 2023, according to data compiled by Bloomberg. A Reliance spokesperson didn’t offer any immediate comment, while representatives at Axis, ICICI, HDFC and YES didn’t immediately respond to emails seeking comment outside of businesses hours.
Reliance’s mega offering will boost the local bond market after a slow start this year as firms opted for bank loans to meet financing needs due to lower rates. The Mumbai-based company also joins other Indian companies that are mulling bond offerings soon amid expectations that the Reserve Bank of India could raise interest rates later this year due to inflation risks.
Domestic bond borrowing falls
Indian companies have borrowed Rs 8.9 lakh crore via domestic bonds so far this year, down about 11% from a year ago, according to data compiled by Bloomberg.
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