The conglomerate involved in oil extraction and telecommunications intends to conduct its first domestic bond issuance after three years, planning to raise 12,500 crore rupees, equivalent to $1.32 billion USD. The issuance of five-year notes with an annual coupon rate of 7.47% is scheduled for investor applications in the week ending September 18.
According to five investment banks, Reliance Industries, owned by billionaire Mukesh Ambani, is preparing to return to the Indian rupee bond market after an almost three-year hiatus. This issuance will be the largest single tranche fundraising from a rating agency since November 2023.
According to the bankers, this issuance will be RIL's first rupee bond issuance since November 2023, when the company raised 20,000 crore rupees in the largest local currency debt sale by an Indian non-financial company.
The bankers, who wished to remain anonymous, noted that the sharp decline in yields on domestic bonds maturing up to five years has made such financing cheaper compared to selling dollar debt. They also added that large private banks are acting as deal arrangers and will partially subscribe to these bonds.
Furthermore, the company is considering issuing ten-year bonds and is in talks with banks and investors.