Reliance Industries Plans $2 Billion Asset-Backed Securities Deal
Reliance’s PTC deal will also give investors an opportunity to own top-rated asset-backed securities in a market where issuance is largely dominated by shadow lenders.
Photographer: Prakash Singh/Bloomberg
Billionaire Mukesh Ambani’s Reliance Group is planning to raise about 180 billion rupees ($2 billion) through asset-backed securities, according to people familiar with the matter, in what could be one of the largest such deals in India this year.
The securities will be issued by a trust and backed by a pool of loans tied to the conglomerate’s infrastructure and telecom divisions, the people said, adding that the securities could mature in three to five years. Barclays Plc is arranging the deal, the people said.
Spokespeople at Reliance and Barclays didn’t immediately reply to a request for comment outside of business hours.
In India, securitization deals generally take two forms: asset-backed securities, known locally as pass-through certificates, and direct assignments. Though a small market, securitization volume in the country is set to touch a record high of more than 2.5 trillion rupees in the year ending March, according to a June note from ICRA, an affiliate of Moody’s Ratings.
The sale is being arranged as Ambani’s Reliance Industries — India’s most valuable company and the operator of the world’s largest refining complex — has been caught in the crosshairs of discord between the US and India, where President Donald Trump has attacked the South Asian nation for buying Russian oil.
Reliance’s PTC deal will also give investors an opportunity to own top-rated asset-backed securities in a market where issuance is largely dominated by shadow lenders, which are non-bank financial firms. The transaction is set to be completed by mid-September, the people said.
