Debt

Debt financing

Reliance to raise Rs.12,500-Cr through local-currency bonds

Business Line  

Reliance Industries is planning to raise up to INR 12,500-Cr through five-year local-currency bonds as early as next week. The transaction includes a base issue of INR 10,000-Cr and a greenshoe option of INR 2,500-Cr. Axis Bank, ICICI Bank, HDFC Bank, and YES Bank are acting as the arrangers for the issuance.Reliance Industries intends to issue notes with a coupon of 7.47% due in five years. This capital raise represents the company's first offering since November 2023 and is set to be the largest listed bond sale in the domestic debt market this year.The company plans to use the funds to boost its financing requirements, following a period where many firms favored bank loans due to lower interest rates. The move comes as other Indian entities consider bond offerings amid expectations that the Reserve Bank of India may increase interest rates later this year due to inflation risks.