Reliance Industries (RIL), India's largest corporation by revenue, has successfully raised $3 billion through a consortium of 11 banks, marking its largest borrowing deal in nearly two years. This five-year loan, finalized last month, includes $450 million denominated in Japanese yen and is primarily aimed at refinancing loans maturing in 2025. The deal is priced at 120 basis points above the three-month Secured Overnight Financing Rate (SOFR), which stood at approximately 4.80% in mid-December. This makes the dollar-denominated portion of the loan priced at around 6%, while the yen-denominated portion is priced at 75 basis points above the three-month Tokyo Interbank Offer Rate (TIBOR).

RIL has already utilized $700 million from this loan and plans to access additional funds in the current quarter as required. The loan is being used to enhance the company’s financial flexibility, particularly as it prepares for significant repayments due in 2025. Bloomberg data indicates that around $2.9 billion, including interest payments, is due that year.

The loan’s dual-currency structure, comprising both U.S. dollars and Japanese yen, allows RIL to manage its financial obligations more efficiently. Additional banks are expected to join the syndication later this quarter, which would help mitigate risks for the lenders and expand their capacity to lend further to RIL, one of India's most creditworthy companies.

The key banks involved in the deal include Bank of America, which holds the largest share of $343 million, followed by DBS Bank and HSBC with $300 million each. Other participants include Japan's MUFG ($280 million), India’s State Bank of India ($275 million), and Japanese lenders Standard Chartered, Mizuho Bank, and SMBC, each contributing $250 million. First Abu Dhabi Bank, Citibank, and Credit Agricole CIB have each contributed $241 million.

This latest loan deal mirrors a similar dual-currency loan that RIL secured in late 2022, which initially targeted $3 billion but eventually expanded to $5 billion due to strong interest from global banks and approval from the Reserve Bank of India.