Reliance Industries Set To Tap Rupee Bond Market After 3 Years With ₹12,500 Cr Bond Issue

Reliance Industries is set to return to India’s rupee bond market after nearly three years, with plans to raise ₹12,500 crore through a five-year bond issue, Reuters reported, citing five merchant bankers.

The proposed notes will carry an annual coupon of 7.47%, with the company expected to invite bids from investors in the week ending September 18, according to the bankers. If completed, the issue would be the largest single-tranche fundraising by a rated company since November 2023.

RIL’s return to the domestic bond market comes as borrowing through shorter-duration rupee bonds has become more attractive amid falling local yields.

Why Reliance Is Returning To The Rupee Bond Market

The proposed issue would be Reliance Industries’ first rupee bond sale since November 2023. The company had raised ₹20,000 crore at the time, in what was then the largest local-currency debt sale by an Indian non-financial company.

Bankers cited by the news agency said the decline in yields on bonds of up to five years has made local borrowing cheaper compared with raising funds through dollar-denominated debt.

The five-year government bond yield has fallen 33 basis points since the start of June, helped by large dollar inflows through schemes backed by the Reserve Bank of India. At the same time, higher US Treasury yields have increased the cost of dollar funding for Indian borrowers.

Large Banks To Help Arrange The Issue

Large private-sector banks are expected to act as arrangers for the Reliance bond sale and may also partly subscribe to the securities, according to the bankers cited by the news agency.

The planned ₹12,500 crore issue would give Reliance access to domestic funding at a time when rupee borrowing costs have become more favourable. The company, however, has not publicly confirmed the proposed transaction.

Reliance is also considering a 10-year bond issue and is in discussions with bankers and investors, according to the report. The possible longer-duration issue would be separate from the proposed five-year fundraising.

The bond plan comes from Reliance Industries, the oil-to-telecom conglomerate led by Mukesh Ambani. The company has been investing heavily across its businesses, while its retail and digital operations are becoming increasingly important drivers of growth. Reliance reported FY26 capital expenditure of ₹1.44 lakh crore, according to its investor-relations disclosures.