Reliance Industries to Raise ₹10,000 Crore via Local Bonds

Reliance Industries plans to raise approximately ₹10,000 crore through the sale of 10-year AAA-rated rupee-denominated bonds with an annual coupon of 7.90%. The company intends to invite investor bids as early as next week, aiming to finalize the borrowing before the Reserve Bank of India announces its monetary policy decision on October 7.

This issuance is the second tranche of a larger fundraising effort in September, following a ₹12,000 crore raise via five-year bonds two weeks prior. If completed, the company's total outstanding bonds will reach ₹54,000 crore. The conglomerate opted for local currency debt over US dollar debt due to a spike in US Treasury yields.

The move coincides with a broader surge in borrowing among Indian firms seeking to secure debt amid surplus banking system liquidity. Other entities seeking bids include the Small Industries Development Bank of India for up to ₹6,000 crore, Adani Airport Holdings Limited for up to ₹1,000 crore, Aditya Birla Capital for ₹1,000 crore, and JSW Energy for up to ₹5 billion across various terms. Corporate issuers are moving quickly as they anticipate potential monetary policy tightening by the central bank to combat inflation risks driven by high oil prices.