Jio Credit Bond Issue Raises Rs 1,000 Crore Amid Strong Investor Demand
| 2025-05-15
Jio Credit, a subsidiary of Jio Financial Services, has raised Rs 1,000 crore in its debut bond offering, pricing the issuance at a yield of 7.19% amid robust investor interest.
Jio Credit, a unit of Jio Financial Services, raises Rs 1,000 crore in its first bond issue at a 7.19% yield, attracting strong interest from mutual funds.
Jio Credit, a subsidiary of Jio Financial Services, has raised Rs 1,000 crore in its debut bond offering, pricing the issuance at a yield of 7.19% amid robust investor interest.
The bond sale, launched with a base size of Rs 500 crore and an additional Rs 500 crore greenshoe option, received bids totalling Rs 1,500 crore—three times the base amount, according to financial industry sources. The bonds have a maturity period of 2 years and 10 months.
Competitive Pricing for First-Time Issuer
Despite being a first-time issuer in the domestic bond market, Jio Credit achieved what analysts called "tight pricing" on the back of the Jio group's strong brand reputation. The 7.19% yield is understood to be 7–8 basis points lower than comparable issues from top-tier private sector non-banking financial companies (NBFCs), signalling investor confidence in the offering.
ICICI Securities Primary Dealership served as the sole arranger for the transaction.
The issuance drew keen interest from mutual funds, which are typically attracted to shorter-duration instruments due to liquidity preferences and regulatory considerations. There was also limited participation from insurance companies, according to people familiar with the deal structure.
Market Volatility and Yield Trends
Bond market conditions in India have seen fluctuations in recent months. Analysts point to recent geopolitical tensions between India and Pakistan, which had pushed up yields on government securities (G-Secs), influencing broader corporate bond yields as well.
However, after the announcement of a ceasefire between the two countries, G-Sec yields retreated. Despite this, yields on corporate debt instruments have remained elevated, creating a favourable window for issuers like Jio Credit to enter the market.
"This was a well-timed issue," said one bond market strategist. "Investors are positioning for a softening yield environment, which made the offering attractive despite the recent volatility."
Background and Previous Fundraising
Jio Credit, previously known as Jio Finance, is part of Jio Financial Services—a core investment company registered with the Reserve Bank of India. The parent firm also oversees Jio Insurance Broking and Jio Payments Bank.
In March, Jio Credit had shelved an earlier plan to raise Rs 3,000 crore through the domestic bond market due to unfavourable yield conditions. However, it successfully issued Rs 1,000 crore in commercial paper during the same period, with a three-month maturity at a yield of 7.80%.
The recent bond issue is seen as a strategic shift towards more stable, longer-term fundraising for the group’s financial services operations.
India’s Evolving Credit Market
India’s corporate debt market has been experiencing gradual deepening, supported by regulatory reforms and increased participation from institutional investors. The success of Jio Credit’s bond sale underscores the growing role of digital-first financial entities in mobilising capital outside traditional banking channels.
Jio Financial Services is part of Reliance Industries, one of India’s largest conglomerates. The financial arm was formed to consolidate and expand the group’s footprint in sectors such as lending, insurance, and payments, leveraging its large telecom and retail customer base.
As Jio Credit establishes itself in the bond market, analysts will be watching for future issuances and the company's broader strategy in India’s competitive financial services landscape.
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