Reliance plans up to $1 billion in local currency bonds

According to fresh market updates, Mukesh Ambani’s Reliance Industries Ltd. is planning to mobilize as much as Rs 10,000 crore ($1 billion) through local-currency bonds as early as the week ahead, according to people familiar with the matter, in what would be its second debt offering this month.

The firm aims to offering AAA rated notes due in 10 years, the people stated, asking not to be identified as the details are private. The bonds may carry a coupon of 7.90%, they stated. That’s a tad softer than the 7.97% average yield on top-rated 10-year corporate bond on Wednesday, according to data compiled by Bloomberg.

A representative for the firm didn’t immediately reply to an email seeking comment. Reliance Industries last week borrowed 120 billion indian indian rupee terms through five-year securities at a coupon of 7.47%.

Many issuers are considering bond offerings amid expectations that the Reserve Bank of India may tighten monetary policy later this year as inflation risks mount amid high crude prices. The monetary authority is additionally taking aggressive measures to reduce liquidity in the banking system as it seeks to curb inflation pressure from surplus cash.

Surplus liquidity at banks stood at 4.2 trillion indian indian rupee terms as of Wednesday, according to a Bloomberg Economics index. That’s much softer than a record high of almost 11 trillion indian indian rupee terms earlier this month. In the meantime, the average yield on top-rated 10-year bond issued by a firm has risen 37 basis points so far in September, poised for the biggest monthly gain in at least three years.

Elsewhere, billionaire Gautam Adani’s Adani Airport Holdings Ltd. and tycoon Sajjan Jindal’s JSW Energy Ltd. are seeking bids in the onshore bond market on Friday. Adani Airport is seeking bids for up to 10 billion indian indian rupee terms in three-year notes and JSW Energy is aiming to mobilize as much as 5 billion indian indian rupee terms in seven-year bonds.