Reliance Industries Ltd. is preparing to return to India's rupee bond market with a proposed ₹125 billion ($1.31 billion) issue, marking the conglomerate's first such offering in nearly three years.
The company, controlled by billionaire Mukesh Ambani, plans to raise the funds through five-year bonds carrying an annual coupon of 7.47%, according to five bankers familiar with the transaction.
Investors have been invited to submit bids on September 15 as the oil-to-telecom conglomerate seeks to tap India's debt market for fresh funding.
The proposed transaction comprises a base issue of ₹100 billion and a greenshoe option of ₹25 billion, which would allow the company to increase the amount raised if investor demand permits.
The issue would represent Reliance Industries' first rupee-denominated bond sale since November 2023, highlighting the company's return to the domestic debt market after an extended absence.
Reliance Industries has interests spanning oil refining and petrochemicals, telecommunications, retail and other businesses, making its borrowing plans closely watched by investors in India's corporate debt market.
The proposed bonds have been assigned an AAA rating by Crisil, the highest domestic credit rating, indicating the agency's assessment of a very strong capacity to meet financial commitments.
Reliance Industries did not immediately respond to a Reuters email seeking comment on the proposed bond issue.
Other deals in the market
Reliance's planned offering comes alongside other debt-market transactions reported in India, including proposed fundraising by Canara Bank and Sammaan Capital.
Canara Bank is preparing a perpetual bond issue with a base size of ₹20 billion and a greenshoe option of ₹25 billion. The coupon for the offering is yet to be decided, while the issue carries an AA+ rating from Crisil and Icra.
Sammaan Capital, meanwhile, has brought two separate offerings to the market. The company is offering three-year bonds carrying a 9.05% coupon, with an issue size of ₹5 billion. It is also offering five-year bonds with a 9.10% coupon and an issue size of ₹2.75 billion.
Both Sammaan Capital offerings have been rated AA+ by Crisil and Icra.
The latest bond activity underscores continued demand from Indian companies and financial institutions for funding through the domestic debt market, with investors assessing issuers on the basis of credit quality, tenor and returns.
