Jio Credit to raise ₹500 crore via AAA-rated NCDs; maturity in Oct 2027

The NCDs, offering a 7.05% yield and maturing in October 2027, come amid a likely rebound in corporate bond issuance following a lull in the second quarter

Jio Credit Limited plans to raise ₹500 crore on Thursday through the issuance of redeemable non-convertible debentures (NCDs) maturing on October 13, 2027.

 

The issue will carry a yield of 7.05 per cent and has been rated ‘CARE AAA/Stable’ and ‘CRISIL AAA/Stable’.

 

After a surge in corporate bond issuances during the first quarter, activity slowed in the second, as borrowing costs climbed. However, the market expects a rebound soon, with easing yields likely to rekindle investor interest in the bond market.

 

Indian corporates had raised a record ₹4.07 trillion through debt in the first four months of the current financial year.

 

However, banks, once key players in primary issuance, have raised only about ₹1,800 crore so far this year. Corporates seeking funding have largely turned to external commercial borrowings (ECBs), where the fully hedged cost remains competitive for short-tenor overseas borrowings, or to domestic bank funding linked to the external benchmark lending rate (EBLR).

 

Market participants said many banks currently have ample liquidity and comfortable capital cushions. When lenders require funds, they typically tap qualified institutional placements (QIPs) or raise foreign currency bonds.