Reliance will raise Rs. 15,000 crore through local currency bonds: Raising funds to expand business, this will be the company’s biggest domestic bond sale.

Mukesh Ambani’s Reliance Industries is planning to raise Rs. 15,000 crore through local currency bonds. If this plan to sell bonds is completed, it will be the company’s biggest domestic bond sale.

This information has been given in a Bloomberg report. According to the report, this will be the first bond sale of Reliance Group after 2020 in the domestic bond market.

Recently, Reliance has included retail investors like Qatar Investment Authority and KKR & Company in the business to expand the consumer business. It is believed that for this reason the company has needed to raise funds through local bonds.

What is Local Currency Bond?

Local currency bonds are also called domestic currency bonds. These are debt security bonds, which can be converted into local currency only. That is, they can be converted into the currency of the country in which these bonds are issued.

In this, bond buyers have to follow the credit risk of the company and the changes in interest rates. Generally, government, corporate and other institutions issue local bonds to raise funds.

These are different from foreign currency bonds. The value of bonds issued in foreign currency is in the currency of that country and its interest is also calculated according to the currency of that country.