Reliance Industries to raise Rs 12,500 crore via five-year bonds priced near 7.47%

Reliance Industries announced a plan to raise Rs 12,500 crore through five-year bonds, likely priced at roughly 7.47%, with the transaction set to close on September 18. Axis Bank is expected to receive the biggest allocation, with ICICI Bank, HDFC Bank and Yes Bank following. The bond launch coincides with a surge in foreign-currency deposits at Indian banks, which have mobilised a record $127.2 billion via the RBI’s special swap facility, boosting their capacity to fund corporate loans and projects.

While Life Insurance Corporation of India is not a significant investor because of the bond’s short term, banks are evaluating how to deploy the newly available liquidity across various credit channels. Analysts suggest the influx of FCNR(B) deposits could eventually support credit creation worth up to ₹25-40 lakh crore, potentially influencing lending spreads and corporate financing in the coming quarters.