Mukesh Ambani’s Reliance Industries is set to launch the second tranche of its major local-currency debt fundraising, aiming to raise around ₹10,000 crore ($1.04 billion) through the sale of 10-year rupee-denominated bonds, according to merchant bankers. The oil-to-telecom conglomerate plans to issue these long-term notes at an annual coupon rate of 7.90 percent, with formal bids expected from prospective institutional investors within the next week or two. This upcoming issuance comes just two weeks after Reliance successfully raised ₹12,000 crore via five-year corporate bonds carrying an annual coupon of 7.47 percent, which marked its first return to the domestic bond market since November 2023. Financial insiders indicate that the conglomerate is keen on concluding this massive borrowing round prior to the Reserve Bank of India’s central bank monetary policy meeting scheduled for October 7 to lock in favorable rates. Top private-sector banks are anticipated to serve as official arrangers for the deal while simultaneously subscribing to a significant portion of the debt issuance themselves. The aggressive turn toward domestic debt issuance is driven by relatively benign yield conditions in the local corporate bond market, making rupee borrowing a considerably cheaper financing route compared to offshore U.S. dollar debt, where Treasury yields have recently experienced substantial upward spikes. Once completed, this latest tranche will push Reliance’s total outstanding bond issuance to an impressive ₹54,000 crore, reflecting its strategy to leverage domestic liquidity to support expansive corporate initiatives and refinance existing capital structures. By securing long-term capital at competitive interest rates, Reliance continues to demonstrate its dominant treasury capabilities and strong credit standing among domestic institutional investors. The dual bond sales showcase the massive demand for top-tier Indian corporate paper despite macroeconomic shifts, allowing the country’s largest conglomerate to comfortably diversify its maturity profile while insulating itself from international interest rate volatility. Market participants will be closely watching the bidding process to gauge wider investor appetite for long-duration corporate debt in the region, as Reliance sets a benchmark for other Indian private sector issuers looking to capitalize on favorable domestic market dynamics ahead of upcoming regulatory and monetary policy decisions.
