Reliance Industries Limited (RIL), India’s largest corporation by revenue, has successfully raised $3 billion from a group of 11 banks, marking its largest borrowing deal in almost two years. This five-year loan, finalized last month, is a mix of US dollars and Japanese yen.
The loan is priced at 120 basis points above the three-month Secured Overnight Financing Rate (SOFR) for the dollar-denominated portion. The yen-denominated part is priced 75 basis points above the three-month Tokyo Interbank Offer Rate (TIBOR). At the time of the deal, the three-month SOFR was approximately 4.80%, making the dollar portion of the loan priced around 6%.
The funds will primarily be used to refinance existing loans that are due in 2025. RIL has already accessed $700 million from the loan and plans to use more as needed in the current quarter. The company is preparing for significant loan repayments scheduled for 2025.
This loan agreement, which involves two currencies—US dollars and Japanese yen—was executed last month. More banks are expected to join the syndication later this quarter, which will help manage risks and expand lending capacity for RIL, one of India’s most creditworthy companies.
According to Bloomberg data, RIL has about $2.9 billion, including interest payments, due in 2025. The loan aims to give the company greater financial flexibility.
The largest share of the loan, $343 million, is held by Bank of America. Other major participants include DBS Bank and HSBC ($300 million each), Japan’s MUFG ($280 million), and India’s State Bank of India ($275 million). Japanese lenders Standard Chartered, Mizuho Bank, and SMBC each have a $250 million exposure. First Abu Dhabi Bank, Citibank, and Credit Agricole CIB have each contributed $241 million.
This deal is similar to a dual-currency loan that RIL raised in late 2022, which ultimately expanded to $5 billion, surpassing the initial $3 billion target. That earlier loan also attracted strong interest from global banks.
Reliance Industries holds a BBB+ credit rating with a stable outlook from S&P, making it India’s highest-rated corporate borrower. This rating is higher than India’s BBB- sovereign rating.
