Reliance Industries mulls raising Rs 20,000 crore through bond sale

8 Nov 2023 , 11:00 AM

Reliance Industries, owned by Mukesh Ambani, plans to raise up to 20,000 crore in its largest domestic bond sale this week, the largest such domestic issuance by a non-BFSI private entity in India, where regulators want companies to rely on market instruments to help establish a corporate bond market that reflects the breadth and stature of Asia’s No. 3 economy.

According to sources, non-convertible debentures (NCD) would be sold via the electronic book mechanism on the BSE’s bond platform on November 9 between 10:30-11:30 a.m. The issue has a Rs 10,000 crore basic size and a Rs 10,000 crore green shoe option.

Crisil and Care Ratings rate the bonds AAA with a stable outlook and a 10-year maturity. The instruments are partially paid, secured, redeemable, non-convertible debentures that rank equivalent to Reliance’s present or future secured loans or NCDs.

If Reliance raises the whole 20,000 crore through the offering, it will be the largest bond issue by an Indian corporation outside of the conventional lending sector of banking and financial services.

RIL last used domestic loan markets in April 2020, a month after the countrywide shutdown was enacted to prevent the spread of Covid-19. The Ambani-owned business had previously raised Rs 2,795 crore through five-year bonds with a coupon rate of 7.40%.

At around 10.52 AM, Reliance Industries was trading 0.74% higher at Rs 2,340.90 per piece, against the previous close of Rs 2,323.80 on NSE. 

For feedback and suggestions, write to us at [e-mail]