State Bank of India buys nearly 40% of Reliance's $1.35 billion debt sale

Business Recorder, citing Reuters, reported that State Bank of India led demand for Reliance Industries' 10-year rupee bond issue, which closed on Wednesday. The offering totalled 130 billion rupees, or $1.35 billion, and the state-run lender is estimated to have absorbed close to 50 billion rupees, roughly 40 per cent of the deal. The figures came from five people involved in the transaction who asked not to be named.

The bonds received AAA ratings from Crisil and CareEdge and pay an annual coupon of 7.90%. ICICI Prudential's mutual fund and life insurance arms, along with SBI's pension fund, ranked among the biggest subscribers, one source said. The companies involved had not yet answered Reuters' emails seeking comment.

The transaction came two weeks after Reliance raised 120 billion rupees through a five-year issue at a 7.47% coupon, and it marks the group's first rupee borrowing since November 2023. One investor added that long-dated high-quality paper is scarce, so banks and insurers bought even at a slight premium. Borrowers have been moving early to lock in funding before a possible rate increase by the Reserve Bank of India, as high energy costs push up inflation. Delhi International Airport and Vedanta have already sold rupee notes this week, while Sun Pharmaceutical is weighing an offering of roughly 100 billion rupees.