Billionaire Mukesh Ambani's Reliance Industries Ltd. is planning to raise as much as 125 billion rupees ($1.3 billion) via local-currency bonds as early as next week, people familiar with the matter said, which would make it the largest listed deal in the market this year. The company plans to raise the funds through notes due in five years at a coupon of 7.47%, the people said, asking not to be identified as the details are private.

Axis Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd. and YES Bank Ltd. are the arrangers to the issuance, the people said. The offer size is 100 billion rupees with a greenshoe option to raise another 25 billion rupees, the people said. The issuance is set to be the biggest listed bond sale in the domestic debt market this year and also the conglomerate's first offering since November 2023, according to data compiled by Bloomberg.

Reliance's mega offering will boost the local bond market after a slow start this year as firms opted for bank loans to meet financing needs due to lower rates. The Mumbai-based company also joins other Indian companies that are mulling bond offerings soon amid expectations that the Reserve Bank of India could raise interest rates later this year due to inflation risks. Indian companies have borrowed 8.9 trillion rupees via domestic bonds so far this year, down about 11% from a year ago, according to data compiled by Bloomberg.