Market sources recently shared that Jio Financial Services is in talks with the merchant bankers to issue its maiden bond. Yes, you heard it right, Jio Financial Services is gearing up for its inaugural bond issuance. It is said that the financial services venture of Reliance is aiming to gain between Rs 5000 crore and Rs 10000 crore through the bonds of five years. Furthermore, it is also anticipated that the five-year bonds can be during January-March. Sources are confident that Mukesh Ambani’s financial services venture would raise somewhere between Rs 5000 crore and Rs 10000 crore with the five-year bonds. You should stick with this page and go through this article till the end. Continue reading this article and learn exclusive updates on the market. Scroll down.
Market experts said the rate on the bonds can be higher between 15 and 25 basis points than that on Reliance Industries bonds issued earlier this month. Rockfort Fincap’s founder and managing partner Venkatakrishnan Srinivasan said, “As it is an NBFC (a non-banking financial company), coming to the market for the first time, it can’t go too long or too short. The market expects a five-year bond issuance in the last quarter of this financial year,” Swipe down the page and read more details.
Sources also added that the NBFC is currently undergoing a credit-rating process to obtain the approvals. Managing director and head of institutional fixed income at JM Financial, Ajay Manglunia said, “Looking at its capitalization and such a large industrial presence, in all probability, it will get the AAA rating. But so far, there has been no rating announced,” In the second quarter of the current fiscal year, Jio Financial Services reportedly increased its net profit to Rs 668.18 crore (almost double) which was Rs 331.92 crore in the first quarter of the previous fiscal year. Reportedly, the significant increase in the net profit surged on the back of healthy growth in revenue. Swipe down the page.
Recently, Jio Financial Services got approval from the RBI (Reserve Bank of India) to appoint Anshuman Thakur, Isha Ambani, and Hitesh Sethia as directors. Manglunia said, “Reliance is a manufacturing company and this is an NBFC. So typically other AAA-rated NBFCs are at around the 8 percent handle,” On November 9, Reliance Industries gained Rs 20,000 crore through 10-year bonds at a coupon of 7.79 percent. Stay tuned to this website for more details and further updates.