Reliance Industries is proceeding with its massive ₹12,000-crore, 10-year bond issue offering a 7.9% coupon rate—surpassing 74 basis points above the 10-year benchmark government bond yield of 7.16%—even as escalating borrowing costs force other prominent entities to stall or scrap their fundraising plans.
The resilient market move by India’s largest private conglomerate contrasts sharply with a cautious broader corporate debt market. State-owned Sagarmala Finance recently scrapped its debut ₹600-crore bond sale after receiving bids between 8.3% and 8.4%, exceeding its sub-8% target. Similarly, state-run Sidbi withdrew its ₹6,000-crore auction last week after investors demanded roughly 8.03%, well above its targeted ceiling of 7.90%. Meanwhile, other major corporate issuers are actively tapping available liquidity; Adani Airports recently secured ₹1,000 crore via a three-year paper at an 8.96% rate.
Reliance’s ability to successfully move forward with its substantial capital raise highlights its strong market standing and liquidity access amid a tightening macroeconomic environment where rising yield expectations have forced many state-backed issuers to retreat.
