Reliance Capital plans bond issue of varying tenors

Reliance Capital has initiated talks with mutual funds and bankers to raise short term and long term bonds through the private placement route. Money market dealers said that the company is looking at raising bonds with varying tenors however they are unsure of the issue size.

It has proposed to offer 10.20% for 18 months and three-year bond and 10.40% for 10-year bond. A dealer from a large commercial bank said, ""The company has yet not entered the bond market, but it is testing the market to check investor appetite.""

Another dealer said that the company may enter the debt market after the Reserve Bank of India announces its policy stances on Tuesday. Most bankers and economist think that RBI would pause and not cut policy rates on account of high inflation.