Jio Financial Services in talks with bankers for maiden bond issue: Report

Jio Financial Services (JFS), that was carved out of Mukesh Ambani-led Reliance Industries, is reportedly in early talks with merchant bankers for its maiden bond issue. The company may look to raise $600 million to $1.2 billion through the issue.

According to a report in news agency Reuters, Jio Financial Services may tap the market in the last quarter of this financial year. Bankers told the news agency that Reliance Industries is in the process of getting JFS’ credit rating and other necessary approvals. 

The company was listed in August and aims to establish itself as a full-service financial services firm in auto, home loans and other products. 

Bankers have recommended Jio Financial Services to issue shorter-term commercial papers and put bank borrowing lines in places to establish pricing. It has also been recommended that the company issue bonds not longer than five-year maturity, as per four bankers. 

A merchant banker with a private bank told the agency that since the company is new, the documentation and compliance would take time and the bond issue is expected to come through before the end of March. 

Jio Financial Services debuted on the stock exchanges on August 21, listing at Rs 265, which is close to the discovered price of Rs 261.85. It started trading at NSE at Rs 262 and BSE at 265. The market capitalisation of Jio Financial Services was estimated at Rs 1.66 lakh crore.

Jio Financial was originally incorporated as Reliance Strategic Investments Private Limited in June 1999 and was subsequently changed to Reliance Strategic Investments Limited in January 2002, and a fresh certificate was incorporated. On July 25, 2023, the name of the company was further changed to Jio Financial Services. The NBFC is a holding company and operates its financial services business through consumer-facing subsidiaries such as Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL) and a joint venture namely Jio Payments Bank Limited (JPBL).

Also read: RBI approves appointment of Isha Ambani, Anshuman Thakur, Hitesh Sethia as directors of Jio Financial Services