The company is expected to invite bids from investors in the week ending September 18, bond market sources aware of the plans told ET.133948268The RIL offer would be the largest, single-tranche bond issue by a rated company since November 2023.Adani Airport Holdings is also looking to raise funds through bonds next week, while Larsen & Toubro is considering a ₹500-crore issue.
The timing is attractive for large borrowers because the market is increasingly pricing in a possibility of monetary tightening, said Venkatakrishnan Srinivasan, managing partner, Rockfort Fincap LLP.
Corporates are looking to lock in medium-term funding costs before any increase in benchmark rates feeds through to bank lending rates and bond yields.
Read more: IDBI Bank shares crash 11% amid price concerns as Fairfax deal moves closerThe impact of forex-inflow programs is visible in corporate bond pricing.
Five-year AAA PSU corporate bond yields were at 7.85% on June 3 and stood at 7.68% on September 7, a decline of 17 basis points.
