Jio Credit raises Rs 1,000 crore in maiden bond issue at 7.19% yield

Jio Credit, a wholly-owned subsidiary of Jio Financial Services, has raised Rs 1,000 crore through maiden bond issuance, selling bonds maturing in 2 years and 10 months at a cutoff yield of 7.19 per cent, sources said.

The issue included a base size of Rs 500 crore and a greenshoe option of Rs 500 crore.

The issue received bids worth Rs 1,500 crore, three times the base issue, according to sources. The offering attracted strong interest primarily from mutual funds, given its shorter tenor, though there was some participation from insurance companies as well, sources further said.

Additionally, sources indicated that the cutoff yield was 7–8 basis points lower than that of some leading private sector non-banking financial companies (NBFCs) operating in the same segment.

ICICI Securities Primary Dealership was the sole arranger for the issue, sources said.

“Due to the escalation in tensions between India and Pakistan, yields on government securities had risen, leading to a corresponding spike in corporate bond yields. However, following the ceasefire announcement, G-Sec yields have rallied, while corporate bond yields have not seen a comparable recovery. In this context, Jio Credit managed to secure a tight cutoff despite it being a maiden issue—largely attributed to the strength of the brand. Typically, maiden issues carry a cut-off 5–10 basis points higher than regular issuances,” said Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP.

In March, Jio Credit, which was earlier known as Jio Finance, was considering entering the domestic capital market to raise up to Rs 3,000 crore. However, the firm delayed the issuance as yields on corporate bonds were trending higher, and there was expectation of yields softening in the coming months.

The company, in March, completed its maiden commercial paper issuance, raising Rs 1,000 crore at a yield of 7.80 per cent by selling commercial papers with a tenure of three months.

Jio Financial Services is a core investment company registered with the RBI. It operates its financial services business through consumer-facing entities, including Jio Credit, Jio Insurance Broking, Jio Payment Solutions, Jio Leasing Services, Jio Finance Platform and Service, and Jio Payments Bank.

Jio Credit has an asset under management (AUM) of Rs 10,000 crore as of March 2025. It offers home loans, loan against property, loan against mutual funds, and loan against shares. Additionally, it is also into vendor financing, working capital loans, and term loans among other things.