Mumbai, India — Reliance Industries explores historic rupee bond sale amidst diversification drive. Reliance Industries Ltd., India’s corporate behemoth helmed by Chairman Mukesh Ambani, is reportedly contemplating a groundbreaking local-currency bond sale in India, aiming to secure a substantial sum of up to 150 billion rupees ($1.8 billion).
People familiar with the matter, requesting anonymity due to the confidential nature of the discussions, revealed that this prospective transaction could potentially become Reliance’s most significant rupee sale to date, according to data compiled by Bloomberg.
If finalized, this move would signify a monumental financial stride for Reliance Industries, representing its largest rupee-denominated bond issuance ever recorded.
The company, whose expansive portfolio spans petrochemicals, refining, wireless communication services, and consumer goods, is not only a stalwart in existing sectors but is also making noteworthy inroads into cutting-edge domains such as 5G technology, green energy, and financial services.
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Reliance Industries’ recent foray into consumer-centric businesses has necessitated substantial capital, driving the conglomerate to actively seek funding avenues.
Earlier this year, its retail arm successfully secured investments from prominent entities like Qatar Investment Authority and KKR & Co., bolstering its financial resilience.
Despite the prevailing challenges posed by escalating borrowing costs in India, a trend exacerbated by global interest rate hikes, Reliance Industries maintains a sterling credit rating of AAA from Crisil Ratings.
This creditworthiness stands notably superior to the AA rating attributed to Tata Motors Ltd., according to Bloomberg’s comprehensive data analysis.
However, it is worth noting that credit rating agencies Moody’s and Fitch have assessed Reliance Industries at Baa2 and BBB respectively, positioning the company at the lower echelons of the investment grade spectrum.
Reliance Industries’ strategic maneuvering and financial initiatives continue to capture market attention, underlining the company’s relentless pursuit of growth and diversification in India’s rapidly evolving business landscape.
As Reliance Industries explores historic rupee bond sale amidst diversification drive, market observers keenly await further developments on this potential bond sale, recognizing its potential to reshape the financial dynamics of one of India’s corporate giants.
