Dalal Street Week Ahead: Broader trend intact, but short-term risks rising

Mumbai: Jio Financial Services‘ subsidiary Jio Credit priced its maiden bond issue on Wednesday with the lender receiving bids three times the minimum amount it was looking to raise, according to people aware of the developments. The non-bank lender raised a total of ₹1,000 crore through bonds maturing in March 2028 at a coupon of 7.19%. The base issue size was ₹500 crore and the remaining was the greenshoe option.

Email sent to Jio Financial seeking comments remained unanswered at the time of going to the press. “The appetite for Jio Credit’s bond issue is a reflection of the company’s strong parentage. The investors also lapped up the bonds because it gave them an opportunity to take exposure to new AAA-rated credit and diversify their holdings,” said a person aware of the developments.

ICICI Securities Primary Dealership was the sole arranger for the deal.
In March, the company tapped the debt market with its debut issuance of commercial papers. Then, it had raised ₹1,000 crore at a yield of 7.80% through three-month commercial papers.

It was looking to sell bonds in the domestic market in March but had to postpone the plans because deficit systemic liquidity kept borrowing cost elevated, bond dealers said.