Reliance Industries, led by billionaire Mukesh Ambani, has secured a dual-currency syndicated loan totaling approximately $2.9 billion. This marks the largest offshore borrowing by an Indian company in over a year.
💰 Loan Structure and Details
The loan agreement, finalized on May 9, 2025, comprises two tranches:
- A $2.4 billion tranche denominated in US dollars.
- A 67.7 billion Japanese yen tranche, equivalent to approximately $462 million.
Approximately 55 banks participated in this deal, forming the largest lending consortium for a syndicated loan in Asia this year.
📊 Reliance’s Financial Standing
Reliance Industries holds credit ratings of Baa2 from Moody’s and BBB from Fitch, placing it a notch above India’s sovereign credit rating. This rare distinction underscores the company’s strong financial health and investor confidence.
In its fourth-quarter earnings report released last month, Reliance reported a net debt of ₹1.17 lakh crore after capital expenditure of ₹1.13 lakh crore for FY25. Despite the substantial outlay, CFO V. Srikanth emphasized that the company’s financial position remains stable, citing a flat net debt environment and healthy cash profits that support continued investment. Outlook Business
🌍 Broader Market Context
This significant loan comes at a time when syndicated loan volumes in the Asia-Pacific region (excluding Japan) have reached a 20-year low, totaling about $29 billion in G3 currencies (US dollars, euros, and yen) so far in 2025. Reliance’s $2.9 billion loan accounts for roughly 10% of this figure, highlighting the company’s robust credit appeal and its influential role in the global financial ecosystem.
🔍 Strategic Implications
The funds are expected to support Reliance’s continued expansion across key sectors such as telecommunications, retail, and green energy. This move aligns with Mukesh Ambani’s ambition to propel Reliance into the ranks of the world’s top 30 most valuable companies, up from its current position in the top 50.
