Reliance Industries in Talks for $3 Billion Loan to Refinance Debt
Billionaire Mukesh Ambani-owned Reliance Industries is reportedly in discussions with several banks to secure a loan of up to $3 billion aimed at refinancing debt due next year. Sources familiar with the negotiations, who requested anonymity due to the private nature of the discussions, indicate that about half a dozen banks are involved in the talks. The loan is expected to be syndicated to the wider market in the first quarter of 2025, although specific terms have yet to be finalized and may be subject to change.
According to data compiled by Bloomberg News, Reliance Industries has approximately $2.9 billion in debt obligations due in 2025, which includes interest payments. A spokesperson for the company did not immediately respond to inquiries for comment.
Should the borrowing materialize, it would mark Reliance Industries' return to the offshore loan market since 2023, when the conglomerate successfully raised over $8 billion in loans. This previous financing effort attracted around 55 lenders, as banks sought to participate in deals involving top-tier credits, as reported by Bloomberg.
The new loan initiative comes at a time when the Indian rupee is facing challenges, having hit a record low against the dollar last month amid ongoing outflows from local equities.
Currently, Reliance Industries holds a credit rating that is one notch above India’s sovereign grade, a rare situation where a company's creditworthiness surpasses that of its home country. Moody’s Ratings reaffirmed Reliance Industries’ rating at Baa2 last week, citing the company’s “solidly positioned” credit metrics, which are expected to remain stable despite high ongoing capital expenditures.
