Sukumar SAH
Reliance Industries Ltd (RIL) has clinched a game-changing $2.9 billion dual-currency syndicated loan — setting a new benchmark as Asia’s largest deal of 2025 and the biggest offshore borrowing by an Indian firm in over two years.
The loan comprises two tranches: a $2.4 billion portion denominated in US dollars and a ¥67.7 billion segment (approximately $462 million) in Japanese yen. The financing attracted participation from 55 global banks, forming the largest lending consortium for a syndicated loan in Asia this year.
The landmark loan is not just a financing milestone—it is a powerful affirmation of RIL’s standing in the global financial ecosystem. In an environment where global lending has tightened due to rising interest rates, geopolitical uncertainty, and cautious capital flows, Reliance’s ability to attract such a large and diverse syndicate of lenders underscores its exceptional creditworthiness and global appeal.
55 global banks join hands to offer Asia’s biggest loan to Reliance
Reliance’s achievement is both a reflection and a catalyst of India’s rising global economic standing, showcasing how the country is moving confidently towards becoming a major growth and investment destination worldwide.
At the heart of this confidence lies Reliance’s diversified business portfolio—spanning energy, petrochemicals, telecommunications (Jio), retail (Reliance Retail), digital services, and now green energy. Each vertical is a sectoral leader in its own right, collectively forming a conglomerate that is insulated from the cyclical risks of any one industry. This diversity gives investors assurance of steady earnings and long-term sustainability.
Adding further weight to investor sentiment are Reliance’s credit ratings, which remain stronger than the sovereign rating of India itself. The company is rated Baa2 by Moody’s and BBB by Fitch — both one notch above India’s sovereign rating. This rare distinction is crucial: it signals that Reliance’s governance, revenue-generating capability, and debt management practices are sound enough to be judged less risky than the country it operates in. Very few corporations in emerging markets achieve such a premium.
These ratings are also strategic enablers. They allow Reliance to raise capital more cheaply than many peers and competitors — an edge that becomes critical in capital-intensive sectors like energy transition and telecommunications infrastructure. Global banks and financial institutions are eager to lend to entities with a stable outlook and a proven repayment record—boxes Reliance ticks with consistency.
The loan demonstrates Reliance’s financial sophistication and currency risk management strategy. By diversifying its debt currency exposure, the company can hedge against volatility in any one currency, reduce borrowing costs, and tap into varied pools of liquidity. The yen tranche, in particular, reflects growing Japanese institutional appetite for Indian corporate debt, and Reliance’s ability to speak to multiple investor bases.
Importantly, this capital infusion is not a stop-gap measure or a mere refinancing exercise. As outlined in Mukesh Ambani’s 2024 AGM vision statement, Reliance is embarking on a multi-decade transformation: moving aggressively into new energy businesses (green hydrogen, solar modules), digital platforms, AI-powered solutions, and precision manufacturing. These sectors require heavy upfront capital investment but promise high returns and global leadership positions in the coming decade.
In that sense, the syndicated loan serves as fuel for this transformation — bridging Reliance’s ambitions with the capital required to achieve them. It also signals to markets and competitors that the company is positioning itself not just as an Indian leader but as a future-ready global enterprise.
The syndicated loan comes at a time when global syndicated lending activity, particularly in the Asia-Pacific region (excluding Japan), is experiencing a significant contraction. In 2025, syndicated loan volumes in G3 currencies — US dollars, euros, and Japanese yen — have slumped to a two-decade low of just $29 billion. This downturn reflects a combination of factors: tighter monetary policy in advanced economies, heightened geopolitical risks, and lingering investor caution amid global economic uncertainty. Many corporates across Asia have delayed or downsized their borrowing plans due to higher borrowing costs and a general retrenchment in cross-border risk appetite.
Against this sobering backdrop, Indian companies have emerged as outliers, continuing to access international debt markets with relative ease. As of mid-May 2025, Indian corporates have raised $10.4 billion in foreign currency loans —constituting over a third of the region’s total. This resilience is driven by a combination of India’s strong macroeconomic fundamentals, the stable rupee, and investor belief in the country’s medium-term growth story. Indian firms, particularly large, well-rated conglomerates like Reliance, are seen as safer bets in an otherwise risk-averse lending environment.
Reliance’s fundraising alone accounts for nearly 28 per cent of the total foreign-currency loans raised by Indian companies so far in 2025, making it a bellwether deal. The fact that the company was able to stitch together such a large, dual-currency deal — backed by a consortium of 55 international banks — speaks not only to Reliance’s credibility but also to the appetite global lenders still have for high-quality Indian corporates.