+
Jio Credit to Raise Rs 5 Billion via AAA-Rated NCDs
ECONOMY & POLICY

Jio Credit to Raise Rs 5 Billion via AAA-Rated NCDs

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code