Reliance rides sovereign rating upgrade

Two days after India's sovereign upgrade by Moody's, Reliance becomes the first lender to take advantage.

Energy-to-telecoms conglomerate, Reliance Industries, became the first Indian issuer to take advantage of Moody’s sovereign upgrade on Monday, tapping the international bond markets for $800 million.

The deal came two business days after the rating agency upgraded India from Baa3 to Baa2, enabling Reliance to successfully ride positive sentiment, which was pushing the whole Indian credit curve tighter.

The group has a Baa2BBB rating two notches higher than the sovereign from SP and was able to use its benchmark status to leverage pricing to historically tight levels. As a result, the deal’s 130bp launch spread over Treasuries now ranks as the tightest ever by...

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