BILLIONAIRE Mukesh Ambani-owned Reliance Industries is in talks with banks for a loan of as much as US$3 billion to refinance debt due next year, according to sources familiar with the matter.
About half a dozen banks are in discussions with the Indian conglomerate for the loan, which would be syndicated to wider market in the first quarter of 2025, the sources said, who asked not to be named as discussions are private. Terms have not been finalised yet and could be subject to changes, the sources added.
Reliance Industries has approximately US$2.9 billion worth of debt due in 2025, including interest payments, according to data compiled by Bloomberg News. A spokesperson for the group did not immediately respond to a request seeking comment.
If the borrowing goes through, it would mark Reliance Industries’ return to the offshore market since 2023, when the group raised over US$8 billion of loans. Those facilities, which were for the parent and subsidiary Reliance Jio Infocomm, drew about 55 lenders in total as banks looked to join deals of top-tier credits, according to Bloomberg-compiled data.
The new loan comes amid continued weakening of the Indian rupee, which hit a record low against the US dollar last month, due to ongoing outflows from local equities.
Reliance Industries is currently rated one notch above India’s sovereign grade, a rare instance of when a company’s creditworthiness is higher than the country it is based in.
Moody’s Ratings reaffirmed Reliance Industries’ rating at Baa2 last week, as the company’s credit metrics are “solidly positioned” and “are likely to remain so despite high ongoing capital spending”, it said. BLOOMBERG
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