Reliance Industries Ltd., headed by billionaire Mukesh Ambani, is planning a significant return to India's rupee bond market. The company aims to raise as much as 125 billion rupees, equivalent to approximately $1.3 billion to $1.32 billion, through local-currency bonds. This issuance, anticipated as early as the week ending September 18, 2026, would be the largest listed deal in the Indian market this year and Reliance's first bond offering since November 2023, when it raised 200 billion rupees. The company intends to issue five-year notes with a coupon rate of 7.47%, a rate notably lower than the 7.87% average yield for top-rated five-year corporate bonds as of September 9.
This bond offering is structured with an initial size of 100 billion rupees and a greenshoe option for an additional 25 billion rupees. Major private banks, including Axis Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd., and YES Bank Ltd., are serving as arrangers for the deal, with some also expected to subscribe to the bonds. The timing of this issuance is strategic, as a significant decline in yields on up to five-year local bonds has made domestic funding more attractive compared to dollar debt sales. The five-year government bond yield has fallen by 33 basis points since early June, primarily due to large dollar inflows under the central bank's subsidized schemes.
The issuance is expected to provide a substantial boost to the local debt market, which has seen a slower start this year as companies opted for bank loans due to lower borrowing rates. Market analysts, such as Ajay Manglunia of Capri Global Capital, believe the Reliance rupee bond issue will set a benchmark for other highly rated issuers, attracting considerable interest from fund houses. The deal coincides with Reliance's digital and telecommunications arm, Jio Platforms, reportedly considering an initial public offering, indicating broader capital-market activities for the conglomerate. Reliance is also exploring a potential 10-year bond issue, with discussions underway with bankers and investors.
