Reliance Raises ₹21K Cr, Giving Investors Access to Top-Rated Asset-Backed Securities

Mumbai, September 16, 2025: Reliance Industries Ltd, the corporate conglomerate, has raised approximately ₹21,000 crore through an asset-backed securities (ABS) issuance, all thanks to keen support from institutional investors. Considered as one of India’s largest of its kind deals, it has surely set a new benchmark in the domain of large-scale securitisation transactions. Additionally, it has also given the investors a much-needed exposure to top-rated pass-through certificates, backed by predictable cash flows.

Key Terms & Investor Response

While structuring these securities, multiple trusts were taken into consideration, having maturities of around three to five years and an average coupon of 7.75%. the plan was heavily oversubscribed, and hence the transaction value extended to ₹21,000 crore from the earlier proposed ₹18,000 crore. The response to this issue emphasizes the fact that there is a growing demand for well-rated ABS products among investors.

The country’s leading mutual funds participated in subscribing to about 75 per cent of the total issuance. Major participants included ICICI Prudential Mutual Fund, HDFC Asset Management, SBI Funds Management, Aditya Birla Sun Life AMC, and Nippon Life India Asset Management. The internationally renowned arranger Barclays facilitated the transaction, further adding credibility to the structure and placement.

Market Significance

The securitisation market in India remains relatively small compared to other funding sources, but momentum is building. Industry estimates suggest issuance could cross ₹2.5 lakh crore in FY26, marking a record. The Reliance offering therefore, contributes meaningfully to this growth and provides investors a rare opportunity to invest in structured instruments with higher transparency and credit backing.

Structure & Risks

The pass-through certificates are backed by receivables from Reliance’s infrastructure and digital businesses. While this provides stability, investor returns remain linked to the performance of these receivables and to prevailing interest rate conditions. Nonetheless, the top ratings assigned to the instruments have added comfort for fund managers.

Reliance’s Strategic Move

For Reliance, the transaction offers access to long-term capital without increasing traditional debt obligations. It also shows the company’s ability to tap newer financing channels at scale. The strong investor demand and successful upsizing underline both market confidence in Reliance’s fundamentals and the growing role of securitisation in India’s financial system.

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