This is the first instance of a domestic corporate placing long-tenure instruments in the local market. Reliance offered a front-end discount of 1.05 per cent while placing the papers, sources said. The coupon for the 10-year non-convertible debenture issue was pegged at 14.25 per cent, 15-year issue at 14.45 per cent and 20-year issue at 14.55 per cent.

However, with a front-end discount of 1.05 per cent on the NCDs, the yields work out be in the range of 15 per cent.

Market sources are say that the success of the long-term instruments will encourage Reliance to enter the domestic market with longer term debt instruments. "This move by Reliance Industriesclearly shows that there is a market for long-term corporate instruments," according to market sources.

"At last institutions have come of age as they are willing to pick up long term corporate papers," fund managers said. According to sources, many more corporates will come out with long-term instruments. The central government has privately placed a 15-year paper in the domestic market this fiscal. The centre mopped up Rs 1000 crore via a 15-year paper carrying a coupon of 12.40 per cent.

Term-lending institutions Industrial Development Bank of India (IDBI), Industrial Credit & Investment Corporation of India (ICICI) and Industrial Finance Corporation of India (IFCI) have been raising long term money -- over 20 years -- through deep discount bonds.

In the secondary gilts market, there is no demand for long-term papers at present. "There is no market for gilts maturing above five years," money market dealers said. In the secondary market, 10-year paper is offered at an yield of 12.30 per cent.