Reliance Industries to raise ₹12,000 cr via bonds at 7.9%
Business
Reliance Industries is set to raise ₹12,000 crore through bonds this Wednesday, offering a 7.9% interest rate.
This move comes as borrowing costs are rising for several companies, so much so that Sagarmala Finance actually called off its own bond sale because investors wanted higher rates than it was willing to pay.
Corporate borrowing costs rising in India
Reliance's rate is about 74 basis points higher than what the government pays on its 10-year bonds (currently at 7.16%).
Other big players are feeling the pinch too: Adani Airports just borrowed ₹1,000 crore at an even steeper 8.96%, and Sidbi canceled a ₹6,000 crore auction after bids came in above their comfort zone.
In short, borrowing is getting tougher (and more expensive) for companies across India right now.