MUMBAI: Reliance Industries Limited (RIL), owned by billionaire Mukesh Ambani, is in discussions with leading banks for a loan of up to $3 billion to refinance its upcoming debt obligations in 2025. The Indian conglomerate’s move highlights its proactive financial management as it navigates a dynamic global economic environment.
Strategic Financial Move
According to sources, about half a dozen banks are engaged in talks to arrange the loan, which is expected to be syndicated to a broader market by the first quarter of 2025. While the terms of the deal remain fluid, Reliance is seeking to replace approximately $2.9 billion in debt, including interest payments, due next year. This potential borrowing marks Reliance’s return to the offshore loan market after raising over $8 billion in 2023.
The refinancing effort comes at a time when the Indian rupee has been under pressure, reaching record lows against the US dollar due to consistent outflows from local equities. Despite these challenges, Reliance continues to maintain its reputation for financial strength. Moody’s recently reaffirmed RIL’s rating at Baa2, noting the company’s robust credit metrics and strategic capital investments.
Global Market Presence
Reliance’s high creditworthiness, rated one notch above India’s sovereign grade, underscores its dominant position in global markets. This new loan initiative also reflects the conglomerate’s efforts to optimize its capital structure while funding its ambitious growth projects, including its digital services arm, Reliance Jio, and green energy ventures.
Stock Market Performance
RIL’s stock traded at ₹1,288.50 on December 10, 2024, experiencing a slight dip of 0.51% from the previous close. Despite short-term fluctuations, analysts remain optimistic about the company’s long-term growth trajectory, given its diversified portfolio and strategic investments.
As Reliance Industries negotiates favorable terms for its loan, the company continues to demonstrate its commitment to maintaining financial discipline and leveraging opportunities in global markets.
Source: Web Team, C6N
, owned by billionaire Mukesh Ambani, is in discussions with leading banks for a loan of up to $3 billion to refinance its upcoming debt obligations in 2025){kind=link}