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

MUMBAI: Mukesh Ambani's Reliance Industries is poised to return to the Indian rupee bond market after an absence of nearly three years, with the conglomerate planning to raise US$1.32 billion through a five-year note issuance, according to five merchant bankers. The company aims to sell bonds with a 7.47% annual coupon, marking its first rupee bond offering since November 2023, when it raised 200 billion rupees, the largest local-currency debt sale by a non-financial Indian company at that time.

The bankers spoke on condition of anonymity, as they are not authorized to speak to the media. However, a slowdown in yields on up to five-year bonds locally has made this funding option more attractive than dollar debt sales. The five-year government bond yield has dropped 33 basis points since early June, primarily due to substantial dollar inflows under the RBI's subsidised schemes, which include the non-resident dollar deposit scheme.

Major private banks are serving as arrangers for the deal and are also expected to subscribe to the bonds. Reliance Industries is also considering a 10-year bond issue and is in talks with bankers and investors.