Reliance to raise ₹10,000cr via bonds
What's the story
Billionaire Mukesh Ambani's Reliance Industries Limited (RIL) is gearing up for its second major fundraising round. The company plans to raise around ₹10,000 crore by selling 10-year notes with an annual coupon rate of 7.90%. According to four merchant bankers who spoke with Reuters, RIL will start inviting bids from investors next week or the week after.
Fundraising history
RIL's 1st rupee bond offering since November 2023
Just two weeks ago, Reliance Industries raised ₹12,000 crore by selling five-year papers with an annual coupon of 7.47%.
This was the conglomerate's first rupee bond offering since November 2023 when it had raised ₹20,000 crore in the largest local-currency debt sale by an Indian non-financial company at that time.
Now, RIL is looking to finish this new borrowing before the central bank's monetary policy decision on October 7.
Investor involvement
Bond sale backed by large private-sector banks
The upcoming bond sale is expected to be backed by large private-sector banks, which are likely acting as arrangers for the new deal. These banks may also partly subscribe to these bonds.
The latest issuance will take Reliance's outstanding bonds to ₹54,000 crore.
This move comes amid relatively benign local bond yields, making such funding cheaper than US dollar debt amid a massive spike in Treasury yields.