Reliance Industries is planning to sell bonds worth Rs 15,000 crore, reports claim

Mukesh Ambani's Reliance Industries is working on a plan to raise Rs 15,000 crore ($1.8 billion) through local currency bonds. Such claims have been made in media reports. If this plan is successful, it will be the biggest ever bond sale in currency for Reliance. Let us tell you that after the year 2020, the company is working on a plan to raise money by issuing its first domestic bond.

What does local currency bond mean?
Domestic or local currency bonds are debt securities issued and denominated in the local currency of a particular country. These bonds are usually issued by governments, corporations or other entities of their country. At the same time, the principal and interest of the bond are paid in local currency. These are different from foreign currency bonds. In foreign bonds, the value is denominated in a foreign currency and the principal or interest is paid in that foreign currency. Investors in local currency bonds face credit risk of the issuer as well as interest rate risk associated with changes in domestic interest rates.

Reliance shares gained more than one percent
According to media reports, Reliance Industries is on an expansion spree. In this series, apart from its oil and gas business, the company is expanding its business into retail, telecom, energy and finance. Reliance shares rose more than 1 percent on Thursday, the fourth trading day of the week. It was trading at Rs 2325. Let us tell you that Reliance Industries has received AAA credit rating from CRISIL Ratings. This rating is higher than the AA rating of Tata Motors Limited. However, Moody's and Fitch have given Reliance Industries Baa2 and BBB ratings respectively.