Reliance Jio issues NCDs worth Rs 2,000 crore for funding digital service business

Reliance Jio Infocomm on Thursday issued Rs 2,000 crore of 5 year Non-Convertible Debentures (NCDs), bearing a coupon of 8.32% per annum payable annually.

The funds collected from the issuance of the NCDs will be utilised for rolling out a state-of-the-art digital service business in India, said the company in a release. The issue has been assigned a rating of AAA by CRISIL and ICRA.

The funds will be raised through digitally through the EBP route. Reliance Jio is the first issuer outside the financial services industry to use this route.

This is also the largest debt issuance in the Indian market by any issuer since the electronic bidding platform has been mandated by the Securities and Exchange Board of India (Sebi) for private placement of debt, effective 1st July this year, said the company.

The transaction was fully subscribed within minutes of opening and was eventually over-subscribed with a total book size in excess of Rs 3,500 crores, Reliance Jio said. Key investors include the prominent asset management companies and banks.

Soumyo Dutta, Treasurer, Reliance Industries Limited (RIL) said, “We are overwhelmed by the response that we have received for our maiden issuance on the BSE-BOND platform. It reinforces the faith investors have in our next generation digital services business. The launch of the EBP platform is a significant step towards the development of market infrastructure for Indian Corporate Bond market. It will make the debt issuance process significantly more smooth and transparent for issuers as well as investors.”