Why does Reliance Industries need a loan of Rs 25,000 crore?

Reliance Industries is preparing to take a loan of about Rs 25,000 crore to refinance next year’s debt. The company will have to repay this loan in the first quarter of 2025. In this process, talks are going on with many banks with Reliance. These include about half a dozen banks. No final decision has been taken on the terms of this loan yet. In such a situation, there can be changes in it.

This is the outstanding loan

According to the Bloomberg report, Reliance has a total debt of $ 2.9 billion outstanding in the year 2025. This also includes interest. If the company takes this new loan, then it will be Reliance’s second borrowing under international financial schemes in the year 2023. Last year, Reliance raised a loan of more than $ 8 billion. Financial assistance was taken from different banks for Reliance Jio and its other subsidiaries. These loans were jointly financed by about 55 banks.

This is the reason

India’s rupee has weakened against the dollar. This has happened due to capital withdrawal from the Indian stock market. This has also affected Reliance Industries. This may increase the pressure on payment of international debt. Reliance Industries has a good credit rating. Also, it is one step above India’s government credit rating. In such a situation, the company will not face much difficulty in taking and giving loans.

Financial position is strong

Moody’s Rating has recently maintained Reliance’s credit rating at Baa2. This shows that the company’s financial health is strong. This means that Reliance’s financial position still remains stable and strong, and it is able to repay its debts.