Jio Credit Raises ₹1,500 Crore in its Debut Bond Issue. The issue, with a 7.19% yield, attracted three times the interest, exceeding the ₹500 crore target. Mutual funds were the key investors.
Jio Credit Bond: Jio Credit, a wholly-owned subsidiary of Jio Financial Services, recently raised ₹1,000 crore through its maiden corporate bond issuance. The funds were raised through 2-year and 10-month bonds, with a cut-off yield of 7.19%. The base size of the issue was ₹500 crore, including a ₹500 crore greenshoe option. Notably, the issue received bids totaling ₹1,500 crore, three times the base size.
Mutual Funds and Insurance Companies Show Strong Interest
Mutual funds and insurance companies showed the most significant interest in this bond issue, drawn by the short maturity period. Sources indicate that Jio Credit achieved a very "tight yield" in its first issuance, 7-8 basis points lower than other large private NBFCs. This reflects Jio Credit's popularity and b brand recognition.
Jio's Brand and Market Impact
Venkatkrishnan Srinivasan, Founder of Rockfort Fincap LLP, commented, "Generally, a company's first bond issue commands a higher yield of 5-10 basis points.
But Jio's brand is so b that the company achieved a 'tight yield' right from the start." Securing funding at a lower yield underscores the b market confidence in Jio Credit.
Success in the First Bond Issue
While Jio Credit planned to raise ₹3,000 crore in March 2025, it deferred the plan due to higher yields at that time. Instead, the company raised ₹1,000 crore through a commercial paper issue with a 7.80% yield and a 3-month maturity. Now, Jio Credit has raised significantly more funds at a lower yield through its inaugural bond issue.
Jio Credit's Strong Foundation: ₹10,000 Crore AUM
Jio Credit's Assets Under Management (AUM) reached ₹10,000 crore by March 2025. The company offers services including home loans, property loans, loans on mutual funds and shares, vendor financing, working capital loans, and term loans. Additionally, Jio Credit has introduced various financial products, indicating its deep market penetration.
Jio Financial Services: A Strong Network
Jio Financial Services, a Core Investment Company (CIC) registered with the RBI, operates its financial products and services through various units. These include Jio Credit, Jio Insurance Broking, Jio Payment Solutions, Jio Leasing Services, Jio Finance Platform and Service, and Jio Payments Bank.
ICICI Securities acted as the sole arranger for this bond issue. The success of this bond issue reflects the b and growing popularity of Jio's financial products and services.
