Reliance Seeks ₹10,000 Crore Bond Issue in 10 Years at 7.90%: Bankers

Reliance Industries is planning another visit to the domestic bond market less than two weeks after borrowing ₹12,000 crore via five-year bonds. 

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The company is planning to borrow roughly ₹10,000 crore or approximately $1.04 billion through ten-year rupee-denominated bonds paying annual coupons of 7.90%, as per four merchant bankers mentioned in the report. 

A bidding process could start next week or the week after. Reliance Industries has not commented on the information by the time of the report. 

Reliance issues new bonds after ₹12,000 crore borrowing 

The proposed deal will mark the second part of the planned borrowing from Reliance and will follow the recent return of the company to the rupee bond market. 

Two weeks ago, Reliance borrowed ₹12,000 crore in five-year bonds at the rate of 7.47%. 

That was the first rupee bond issuance from the company since November 2023, when Reliance raised ₹20,000 crore. Then that deal became the largest rupee debt financing among Indian non-financial companies. 

The latest issue, if completed at the planned size, would take Reliance’s outstanding bonds to ₹54,000 crore. 

Bids could be sought before RBI’s October policy 

The timing of the transaction is also being watched closely. 

One of the bankers cited in the report indicated that Reliance would ideally complete the borrowing before the Reserve Bank of India’s monetary policy decision on October 7. 

The people who provided details of the proposed transaction were not identified because they were not authorised to speak publicly. 

Local bond market offers a cheaper route 

Domestic borrowing conditions are playing a part in the choice of funding. 

According to the bankers, relatively benign yields in India’s bond market have made rupee-denominated borrowing cheaper than raising debt in US dollars, where Treasury yields have risen sharply. 

Large private-sector banks are also likely to act as arrangers for the proposed transaction and could subscribe to part of the bond issue. 

For now, the ₹10,000 crore transaction remains a planned issuance based on information provided by the bankers. Reliance itself had not commented on the proposed bond sale when the report was published.