India's Reliance plans first local debt sale after 3 years with $1.32 bln fundraise, bankers say

Reliance Industries, led by billionaire Mukesh Ambani, is set to return to India's local bond market after a three-year hiatus, according to five merchant bankers who spoke to Reuters. The conglomerate plans to raise 125 billion rupees ($1.32 billion) through the sale of five-year notes with an annual coupon of 7.47%. This will mark RIL's first rupee bond offering since November 2023, when it raised 200 billion rupees in the largest local-currency debt sale by a non-financial Indian company.

The bankers' anonymity stems from their unauthorized status to speak to the media, and the company has yet to provide a comment outside of regular business hours. The decision comes as yields on up to five-year bonds have declined significantly, making funding cheaper than traditional dollar debt sales. The five-year government bond yield has decreased by 33 basis points since mid-June, primarily due to substantial dollar inflows under the central bank's subsidized schemes.

Large private banks are acting as arrangers for the deal and are also expected to partially subscribe to the bonds, the bankers further revealed. Additionally, the company is considering a 10-year bond issue and is currently in discussions with bankers and investors.