According to Reuters, Jio Financial Services is in talks to issue its first bond

21 Nov 2023 , 12:25 PM

For its first bond offering, Jio Financial Services in India is in preliminary discussions with merchant bankers, four bankers told Reuters on Monday.

The news reports stated that the company would try to raise between Rs 5,000 crore and Rs 10,000 crore through the offering and might go public in the final quarter of this fiscal year.

According to them, Jio Financial, which was formed by splitting off Reliance Industries, is currently obtaining the required approvals and credit rating.

The August-listed company wants to compete with companies like Bajaj Finance by becoming a full-service provider of financial services in a quickly expanding industry that includes home, auto, and other loans.

According to two bankers who talked to news agencies, Jio Financial could issue shorter-term commercial papers and set up bank borrowing lines in order to determine pricing before issuing bonds.

Four bankers have also advised against issuing bonds with maturities longer than five years.

‘The documentation and compliance will take time because the company is new, and we could see them coming in before end of March,’ a private bank merchant banker told Reuters.

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