Mukesh Ambani-led Reliance Industries is set to return to India’s rupee bond market with what could be the largest single-tranche fundraising by a rated company since November 2023
Mumbai: Reliance Industries Limited is planning to raise up to ₹12,500 crore ($1.32 billion) through a domestic rupee bond issue, marking the company’s return to the local bond market after nearly three years.
According to bankers familiar with the transaction, the proposed issue will involve five-year bonds carrying an annual coupon of 7.47%. Investor bids are expected to be invited in the week ending September 18, making the fundraising potentially the largest single-tranche bond issue by a rated company since November 2023.
First Rupee Bond Issue Since November 2023
The proposed fundraising would be Reliance Industries’ first rupee bond offering since November 2023, when the company raised ₹20,000 crore through local-currency debt. That issue was the largest local-currency debt sale by an Indian non-financial company at the time.
The latest transaction is expected to comprise five-year notes, with the company targeting a 7.47% coupon rate. Reports citing bankers said the deal could provide an important benchmark for other highly rated Indian corporate borrowers.
Why Reliance Is Returning to the Bond Market
One of the key factors behind the proposed issue is the recent decline in domestic borrowing costs.
The yield on India’s five-year government securities has fallen by around 33 basis points since the beginning of June, according to bankers cited in reports. The decline has helped make rupee-denominated borrowing more competitive compared with raising funds through dollar-denominated debt.
At the same time, higher US Treasury yields have increased the relative cost of dollar funding for Indian borrowers, further improving the attractiveness of domestic debt markets.
How the Proposed Issue Is Structured
Reports indicate that the proposed bond issue could have an initial size of ₹10,000 crore, with an additional ₹2,500 crore greenshoe option, taking the total potential fundraising to ₹12,500 crore.
Major private-sector banks are expected to act as arrangers for the transaction, with some of them also potentially subscribing to the bonds, according to bankers cited in reports.
Reliance is also reportedly exploring the possibility of raising funds through a 10-year bond, with discussions underway with bankers and investors.
A Major Deal for India’s Corporate Bond Market
The Reliance issue comes at a time when India’s domestic corporate bond market has seen relatively softer issuance compared with the previous year.
Indian companies have raised around ₹8.9 trillion through domestic bonds so far this year, about 11% lower than the corresponding period a year earlier, according to Bloomberg data cited by Moneycontrol. Meanwhile, yields on highly rated three-year corporate bonds have risen over the past year, while bank lending rates for fresh rupee loans have moved lower.
Against this backdrop, a large AAA-rated Reliance transaction could attract significant investor interest and provide a reference point for other top-rated issuers.
What the Reliance Bond Issue Means for Investors
For institutional investors such as mutual funds, insurance companies and other debt-market participants, a large Reliance bond issue could offer an opportunity to invest in highly rated corporate debt with a five-year maturity.
The 7.47% coupon is also significant because reports indicate it is below the recent average yield for comparable top-rated five-year corporate bonds, highlighting the strength of Reliance’s credit profile and investor demand for its debt.
Reliance’s Broader Fundraising Plans
The proposed bond issue comes alongside other major capital-market activity involving the Reliance group.
Jio Platforms, Reliance’s digital and telecommunications arm, has also been reported to be considering an initial public offering that could potentially raise several billion dollars.
The combination of domestic bond fundraising and potential equity-market activity indicates that the group continues to have significant financing and capital-market plans across its businesses.
Reliance Yet to Comment
The proposed bond transaction has been reported by multiple media outlets citing bankers familiar with the plans. Reliance Industries had not immediately provided a comment on the proposed issue at the time of the reports.
If completed as planned, the ₹12,500-crore transaction would mark a significant return by Reliance Industries to India’s rupee bond market and could become one of the most closely watched corporate debt deals of 2026.
