Reliance Industries has become the first Indian company to raise debt from the US private placement market. CNBC-TV18 reports that many more Indian companies may go the Reliance way.

The USD 40 billion US private placement debt market, comprising large American insurance companies, normally raises funds for companies from developed countries.

But for the first time this market, this week lent a USD 300 million loan to Reliance Industries. It's a 10-12 year loan and has been priced at 155 basis point over treasuries for the 10-year part of the loan and at 165 basis points over treasuries for the 12-year part of the loan. These loans were picked by global insurance giants like AIG and Agon

Stephen Monahan, MD, Private Placements, Bank of America Securities says that with Reliance having shown the way, a bunch of more bluechip Indian companies are likely to tap this market very soon.

The private debt market is more attractive because the cost of raising a loan is only half that of rasing loans from the public market.