According to Bloomberg News, Reliance Industries is planning to raise as much as ₹10,000 crore ($1 billion) through asset-backed securities, marking one of the largest such deals in India this year. The securities will be backed by rental receivables from group companies including Reliance Jio Infocomm Ltd., with notes due in five years and carrying a coupon in the 8.35%-8.40% range. Barclays Plc is currently the only arranger on the deal, with the transaction having a minimum size of ₹5,000 crore and a greenshoe option to retain an additional ₹5,000 crore in oversubscriptions. This would mark another foray by Reliance into the ABS market, following its ₹21,000 crore ABS transaction in September 2025, which was one of the largest such deals in the country. The deal will provide investors an opportunity to access top-tier asset-backed securities in a domestic market where supply is traditionally dominated by non-banking financial companies.
According to reports from Reuters and The Economic Times, Reliance Industries is set to launch a second tranche of its planned mega fundraising through the sale of rupee-denominated bonds worth around ₹10,000 crore ($1.04 billion). The oil-to-telecom conglomerate plans to raise the funds through a sale of 10-year notes at an annual coupon of 7.90%. The company aims to issue AAA rated notes due in 10 years, as reported by people familiar with the matter. The bonds may carry a coupon of 7.90%, which is a tad lower than the 7.97% average yield on top-rated 10-year corporate bond on Wednesday, according to data compiled by Bloomberg.
As reported by Reuters, one of the bankers indicated that "ideally, the company would want to finish the borrowing before the central bank monetary policy decision on October 7." The planned timing suggests the company is capitalizing on favorable market conditions ahead of potential policy changes. The company last week borrowed ₹12,000 crore through five-year securities at a coupon of 7.47%, marking the conglomerate's first rupee bond offering since November 2023, when it had raised ₹20,000 crore in the largest local-currency debt sale by an Indian non-financial company at the time. According to The Economic Times, the rush to raise debt is being driven by surplus liquidity in the banking system, with companies looking to tap the available funds ahead of the Reserve Bank of India's monetary policy decision on October 7.
According to The Economic Times, other firms, including Adani Airport Holdings, will raise significant funds as well this Friday. Adani Airport alone is set to raise ₹1,000 crore on Friday for three years at a rate of 8.96%. On Friday, Small Industries Development Bank of India will raise up to ₹6,000 crore for three years and Aditya Birla Capital will raise ₹1,000 crore for the same maturity, while JSW Energy will raise ₹500 crore for seven years. The increasing number of companies tapping debt indicates the surplus liquidity in the banking system, with many issuers considering bond offerings amid expectations that the Reserve Bank of India may tighten monetary policy later this year as inflation risks mount amid high oil prices.
According to Reuters, this planned issuance comes two weeks after Reliance Industries raised ₹12,000 crore through a sale of five-year papers at an annual coupon of 7.47%. The recent raise marked the conglomerate's first rupee bond offering since November 2023, when it had raised ₹20,000 crore in the largest local-currency debt sale by an Indian non-financial company at the time. Large private-sector banks are likely acting as arrangers for the new deal and would be partly subscribing to these bonds, as reported by the bankers. The average yield on top-rated 10-year bond issued by a company has risen 37 basis points so far in September, poised for the biggest monthly gain in at least three years.
The bond market is witnessing increased activity as Vedanta prepares to launch its first rupee bond of the year before the central bank's monetary policy decision early next month, according to The Hindu BusinessLine. Vedanta plans to raise ₹3,500 crore ($364.75 million) through three-year bonds with a coupon of about 8.75% and AA+ ratings from Icra and Crisil. As reported by The Hindu BusinessLine, the company has tied up with some foreign banks and mutual funds, with the issue expected to be completed in the next three to four days. This adds to the competitive landscape as companies race to raise funds ahead of potential policy changes, with the proposed ABS deal further boosting India's ABS market, which reached a record ₹1.53 lakh crore in the financial year ended March 31, driven by heightened demand from global banks seeking exposure to India's high-growth economy.
