Reliance Industries is planning to raise as much as Rs 12,500 crore via bonds as early as next week, according to people familiar with the matter, which would make it the largest listed deal in the market this year.The company plans to raise the funds through AAA rated notes due in five years at a coupon of 7.47%, the people said, asking not to be identified as the details are private. The rate is much lower than the 7.87% average yield on top-rated five-year corporate bond ended on Monday.The issuance, the conglomerate’s first offering since Nov 2023, will likely provide a boost to local debt market after a slow start this year, as companies turned to bank loans to meet financing needs amid relatively lower borrowing rates. Reliance joins other Indian companies considering bond offerings amid expectations that Reserve Bank of India may tighten monetary policy later this year as inflation risks mount. “Reliance rupee bond issue will set a benchmark for top-rated issuers,” said Ajay Manglunia, executive director at Capri Global Capital. “Fund houses will rush to grab a piece of debt.” The bond offering coincides with Jio Platforms’ upcoming IPO.
