NEW DELHI, May 28: Reliance Industries Limited has successfully executed the largest-ever Samurai loan raised by an Indian corporate, securing JPY 91.9 billion (approximately USD 625 million) as part of a broader strategy to strengthen its access to international capital markets. This landmark financing, alongside two other significant global deals in the fiscal year 2025-26, follows a crucial credit rating upgrade by S&P Global Ratings.
Information was available with The Chenab Times that S&P upgraded Reliance’s international debt rating to A- from BBB+ in December 2025. This upgrade placed the company two notches above India’s sovereign rating, a move attributed by the rating agency to the growing contribution of its consumer-facing businesses and an overall improvement in earnings stability. The enhanced rating is anticipated to broaden Reliance’s access to overseas capital pools and potentially lower its borrowing costs.
In addition to the Samurai loan, which was raised from a syndicate of 10 Japanese and Taiwanese banks and will be used to refinance maturing yen-denominated debt, Reliance also secured approximately USD 500 million equivalent in untied financing backed by Korea’s export credit agency, KSURE. The company noted this as a first-of-its-kind product globally for a corporate entity. Furthermore, Reliance tied up about USD 600 million equivalent in untied facilities supported by Japan’s export credit agency, NEXI. These funds are earmarked for financing its solar photovoltaic and battery gigafactory projects and represent NEXI’s first untied corporate facility worldwide, featuring one of the longest average tenors for an export credit agency-backed financing.
These three transactions collectively highlight Reliance’s increasing capability to tap into diverse global funding sources, even amidst volatile market conditions. The current global economic landscape is marked by geopolitical tensions, uncertainties in trade tariffs, fluctuating interest rates, and significant currency depreciation, such as the Indian Rupee’s sharp fall against the US dollar during FY2025-26.
Despite the challenging environment and the weakening of the rupee to near 95 against the dollar, coupled with easing domestic interest rates, Reliance managed to secure multi-currency financing at competitive rates and long tenors. The company’s financial health indicators have shown marked improvement over the past fiscal year. Its interest coverage ratio surged to 8.83 in FY 2025-26 from 5.59 in the preceding year. Similarly, the debt service coverage ratio more than doubled, rising from 2.06 to 4.03.
The return on capital employed also saw a substantial increase, climbing to 20.7 per cent from 14.6 per cent. As of March 31, 2026, Reliance reported a gross debt of Rs 3.74 lakh crore and a net debt of Rs 1.25 lakh crore. The company maintained a healthy debt-to-equity ratio of 0.41:1.
Reliance’s liquidity management strategy continues to prioritize maintaining robust cash reserves, diversifying its financing avenues, and ensuring access to undrawn credit lines. This approach is designed to effectively support its long-term capital expenditure plans and manage working capital requirements.
The Chenab Times News Desk