Reliance Jio's Rs2,000 crore 5-year NCDs subscribed 175%
08 July 2016
Reliance Jio Infocomm Limited (RJIL's) Rs2,000-crore issue of non-convertible debentures was fully subscribed within minutes of opening and was eventually over-subscribed with a total book size in excess of Rs3,500 crore.
Reliance Jio, a subsidiary of Reliance Industries Limited (RIL), on Thursday announced the issue of Rs2,000 crore of 5-year non-convertible debentures (NCDs), bearing a coupon of 8.32 per cent per annum, payable annually.
The issue has been assigned a rating of AAA by Crisil and Icra.
Reliance Jio plans to use the proceeds of the issue for rolling out a state-of-the-art digital services business in India.
RJIL claims to be the first issuer outside the financial services industry in India, to raise funds digitally through the EBP route. This is also the largest debt issuance in the Indian market by any issuer since the electronic bidding platform has been mandated by Sebi for private placement of debt, effective 1 July this year, said a Reliance Jio release.
Key investors include the prominent asset management companies and banks.
''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,'' said Soumyo Dutta, treasurer, Reliance Industries Limited.
Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries Limited (RIL), is the first telecom operator to hold pan India Unified Licence.
RJIL is setting up a digital ecosystem with pan-India high speed data network, specially designed devices to run on this network, a wide variety of applications and services - from news, entertainment, payment, business, healthcare and education – and rich content.
RJIL has created a legacy free, next-generation voice and broadband network which can be seamlessly upgraded even to 5G and beyond. It will be the only company in the world providing next generation digital services over an end-to-end all-IP network.