Jio Credit Raises Rs 1,000 Cr In Debut Bond Issue, Yields 7.19% Amid High Demand

Mumbai: Jio Credit, a wholly-owned subsidiary of Jio Financial Services, has successfully raised Rs 1,000 crore through its maiden bond issuance. The offering, which consisted of a Rs 500 crore base size and an additional Rs 500 crore greenshoe option, was met with strong investor interest, receiving bids worth Rs 1,500 crore—three times the base amount.

The bonds, maturing in 2 years and 10 months, were priced at a competitive cutoff yield of 7.19 per cent. This yield was notably 7–8 basis points lower than comparable offerings from leading private sector non-banking financial companies (NBFCs), according to sources. Despite being a first-time issuer, Jio Credit managed to secure tight pricing, largely credited to the strength and credibility of the Jio brand.

ICICI Securities Primary Dealership acted as the sole arranger for the transaction. The investor base was largely composed of mutual funds, which were drawn by the shorter tenor of the bonds, though there was some participation from insurance firms as well.

According to market experts, recent geopolitical tensions between India and Pakistan had pushed government securities (G-Sec) yields higher, which in turn impacted corporate bond yields. However, after the announcement of a ceasefire, G-Sec yields corrected, though corporate bonds did not see a similar drop. This environment enabled Jio Credit to attract investors despite the broader volatility, particularly with expectations of yields softening going forward.

Earlier in March, Jio Credit, formerly known as Jio Finance, had delayed its plan to raise Rs 3,000 crore in the domestic market due to unfavorable yield trends. However, the company did complete a successful Rs 1,000 crore commercial paper issuance at a yield of 7.80 per cent for a three-month tenure.

Jio Financial Services, a core investment company registered with the RBI, operates various financial entities including Jio Credit, Jio Insurance Broking, and Jio Payments Bank.