Reliance Industries has raised ₹13,000 crore through 10-year bonds carrying a coupon rate of 7.90%, marking its second major rupee bond issue in September. The latest fundraising takes the company’s total rupee bond borrowings this month to ₹25,000 crore.
Of the latest issue, ₹3,500 crore was allotted to anchor investors, including large mutual funds and insurance companies, while the remaining ₹9,500 crore was raised through the non-anchor portion. The fundraising comes amid expectations of higher interest rates and rising borrowing costs in the bond market.
Earlier this month, Reliance raised ₹12,000 crore through five-year bonds at a 7.47% coupon. The company’s latest 10-year bonds offer a spread of around 65 basis points over the current annualised 10-year government bond yield of about 7.25%.
The ₹25,000 crore raised by Reliance through rupee bonds in September is its largest monthly borrowing from the domestic bond market. It surpasses the ₹20,000 crore 10-year non-convertible debenture issue raised by the company in November 2023.
The latest borrowing comes as Indian bond yields face pressure from expectations of tighter monetary policy, elevated crude oil prices, rupee weakness and higher global bond yields. The long-term borrowing gives Reliance greater certainty over its funding costs amid an uncertain interest-rate environment.
