Reliance Jio raises Rs 2,000cr by selling non-convertible debentures
Reliance Jio Infocomm recently raised Rs 2,000 crore through issuance of non-convertible debentures on the new platform of Bombay Stock Exchnage (BSE). The company intends to use the proceeds to roll out its digital services business. Attracting strong investor interest, the issue received bids worth over Rs 3,500 crore. The Rs 1,500-crore bond issue with a green shoe option of Rs 500 crore got oversubscribed within a few minutes of the issue opening, BSE said.
In a release, Reliance Jio said it issued non-convertible debentures (NCD) worth Rs 2,000 crore. The five-year NCDs carry a coupon rate of 8.32 percent per annum. Prominent asset management companies and banks participated in the issue.
The proceeds of the issuance shall be utilised by Reliance Jio Infocomm Ltd for rolling out a state-of-the-art digital services business in India, it added.
According to the company, the issue was fully subscribed within minutes of opening and was eventually over-subscribed with a total book size in excess of Rs 3,500 crore. Telecom player Reliance Jio, a subsidiary of Mukesh Ambani-led Reliance Industries, is preparing for the commercial roll-out of its services soon.
Today's issue by Reliance Jio Infocomm Ltd generated an overwhelming response of more than Rs 3,700 crore, BSE MD and CEO Ashishkumar Chauhan said in a separate release.
The platform BSE BOND was launched earlier this month.
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, Reliance Industries Treasurer Soumyo Dutta said.
The launch of the EBP (Electronic Book Provider) platform would make the debt issuance process significantly more smooth and transparent for issuers as well as investors, Dutta added. Meanwhile, BSE said its corporate debt market has a market capitalisation of Rs 11,25,072 crore and has been the preferred exchange for 90 percent of public debt issuances by corporates over the last five years.
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All investors, including institutional as well as high net worth (HNI) arrangers, are allowed to bid through BSE-BOND platform.