Reliance Industries plans $3 billion loan to refinance 2025 debt amid rupee drop

Reliance Industries Limited (RIL), headed by Mukesh Ambani, is in advanced talks with six global banks to secure a $3 billion (₹25,500 crore) loan. The funds will be used to refinance $2.9 billion in debt maturing in 2025. The loan is expected to be syndicated to a wider market in the first quarter of 2025. Discussions around terms are ongoing and subject to finalization.

RIL currently has $2.9 billion in debt obligations due next year, including interest payments. This borrowing will mark the company’s first return to the international debt market since its record-breaking $8 billion loan in 2023. That loan saw participation from over 55 global banks, with funds utilized across RIL’s parent entity and its telecom subsidiary, Reliance Jio Infocomm Ltd.

Reliance Industries maintains a Moody’s credit rating of Baa2, one notch higher than India’s sovereign credit rating. The rating highlights RIL’s strong credit metrics and financial health despite its substantial capital expenditures. Moody’s reaffirmed that the company’s credit profile remains stable even amid a high-spending phase.

The Indian rupee recently hit its weakest level against the US dollar, driven by significant outflows from local equity markets. This depreciation has made foreign borrowings costlier, impacting corporate debt strategies across sectors. Reliance’s move to refinance existing debt comes at a time of heightened economic volatility.

Reliance Industries has a market capitalization of ₹17.75 lakh crore, making it India’s largest company by value. Recently, its shares added ₹26,185 crore in market value, closing at ₹1,311.60, with a 52-week high of ₹1,608.95 and a low of ₹1,203.15. The company’s strong market position supports its ability to access competitive financing.

The planned $3 billion loan will be one of the largest offshore borrowings by an Indian company in over a year. This move aligns with Reliance’s strategy to efficiently manage its debt obligations and maintain liquidity while navigating macroeconomic challenges.