Jio Credit Limited is set to raise Rs 5 billion on Thursday through the issuance of redeemable non-convertible debentures (NCDs) maturing on 13 October 2027.

The NCDs will carry a yield of 7.05 per cent and have received the highest credit ratings — ‘CARE AAA/Stable’ and ‘CRISIL AAA/Stable’ — reflecting strong creditworthiness and low default risk.

Following a surge in corporate bond issuances during the first quarter of the financial year, market activity slowed in the second quarter as borrowing costs increased. However, analysts expect a rebound in issuance soon, with easing yields likely to revive investor appetite in the bond market.

Indian corporates collectively raised a record Rs 4.07 trillion through debt in the first four months of the current fiscal year. In contrast, banks — previously among the most active issuers — have raised only around Rs 18 billion so far this year.

Corporates seeking funds have increasingly turned to external commercial borrowings (ECBs), where fully hedged short-tenor overseas loans remain cost-competitive, or to domestic bank funding linked to the external benchmark lending rate (EBLR).

Market participants noted that most banks currently have ample liquidity and robust capital buffers. When additional funds are required, lenders typically prefer to access qualified institutional placements (QIPs) or raise foreign currency bonds, rather than relying on domestic debt markets.