Reliance Industries Secures $3 Billion in Dual-Currency Loan from 11 Global Banks

Mumbai : Reliance Industries Limited (RIL), India’s largest corporation by revenue, has successfully raised $3 billion through a dual-currency loan arrangement with 11 prominent banks. This marks the company’s largest borrowing deal in nearly two years, signaling its commitment to maintain financial flexibility amidst upcoming loan repayments.

The five-year loan, finalized in December 2024, is priced at 120 basis points above the three-month Secured Overnight Financing Rate (SOFR), with a portion of the deal—$450 million—denominated in Japanese yen. As of mid-December, the SOFR rate stood at 4.80%, bringing the cost of the dollar-denominated portion of the loan to approximately 6%.

This strategic financial move is part of Reliance’s efforts to refinance loans maturing in 2025. Already, the company has utilized $700 million of the loan, with plans to draw additional funds in the current quarter, according to sources.

The loan was structured with key banking partners including Bank of America, which holds the largest share at $343 million. Other significant participants include DBS Bank, HSBC, MUFG, and India’s State Bank of India, among others. The dual-currency approach, combining both US dollars and Japanese yen, mirrors a similar successful deal RIL executed in late 2022, which was later expanded to $5 billion due to overwhelming interest from global banks.

This financing arrangement is a part of RIL’s proactive measures to manage its financial obligations, with approximately $2.9 billion, including interest, due in 2025. The deal underscores Reliance’s strong credit profile, with the company maintaining a BBB+ rating, which is higher than India’s BBB- sovereign rating.

As more banks are expected to join the syndication in the coming quarter, the loan deal is poised to offer RIL greater financial flexibility, further cementing its position as one of India’s most creditworthy corporations.