Reliance to raise $3 billion to refinance 2025 debt: report

Billionaire Mukesh Ambani-owned Reliance Industries Ltd is in advanced talks with about six banks to secure a $3 billion loan to refinance debt due in 2025, Bloomberg reported, citing people familiar with the matter.

The large loan will be used to refinance Reliance’s debt obligations, of which about $2.9 billion are due in 2025, including interest payments, the Bloomberg report said, adding that the loan will be syndicated to the broader market in the first quarter of next year.

If the loan is approved, it would mark Reliance’s return to raising loans from the offshore markets. Reliance and its subsidiary, Reliance Jio Infocomm, had secured over $8 billion in loans last year.

At the time, 55 lenders in total had joined, highlighting Reliance’s strong position in the loan market.

The new loan comes even as the Indian rupee is hitting new lows against the dollar amid ongoing outflows from local equities.

Last week, Moody’s Ratings reaffirmed Reliance’s Baa2 rating, underscoring the company’s strong financial benchmarks and ability to stay stable despite its high spending.

Reliance’s credit rating is one level above India’s sovereign rating, a rare instance of a company’s creditworthiness being higher than the country’s it is based in.

The loan terms are still being discussed, and its structure might change during negotiations, Bloomberg reported.

Reliance has not released an official statement.