Reliance Jio bond issue attracts bids worth Rs 3,700 crore

Eliciting robust response from investors, Reliance Jio Infocomm today received bids worth over Rs 3,700 crore for its Rs 2,000-crore bond issue on BSE's new platform.
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.
Green shoe option allows the company to retain a stipulated amount from oversubscription.
The 'BSE-Bond' platform for private placement of debt securities "has created a new record with Rs 3,700 crore of bids received in the bond issuance of Reliance Jio", the exchange in a release.
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.

The platform 'BSE BOND' was launched earlier this month.
"We are delighted with the success and congratulate the entire Reliance Jio Infocomm Ltd team for the tremendous success of this issue on this new platform BSE-BOND," Chauhan noted.
According to the release, BSE corporate debt market has a market capitalisation of Rs 11,25,072 crore and has been the preferred exchange for 90 per cent of public debt issuances by corporates over the last five years.
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The Rs 2,000-crore fund has been raised by Reliance Jio Infocomm Ltd (RJIL) through issue of five-year Non-Convertible Debentures (NCDs), bearing a coupon of 8.32 per cent per annum.
"The proceeds of the issuance shall be utilised by RJIL for rolling out a state-of-the-art digital services business in India," Reliance Jio said in a statement.
RJIL is the first issuer outside the financial services industry in India, to raise funds digitally through the EBP route.
"The transaction was fully subscribed within minutes of opening and was eventually over-subscribed with a total book size in excess of Rs 3500 crore," the company said.

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, RIL.