Jio Credit Debuts With ₹1,000 Crore Maiden Bond Issue at 7.19% Yield

Jio Credit, a wholly-owned subsidiary of Jio Financial Services, raised ₹1,000 crore through its debut bond issuance on May 14, 2025, as per Moneycontrol reports. The company issued bonds with a maturity of 2 years and 10 months, set to mature on March 15, 2028. The bonds were issued at a coupon rate of 7.19%.

As of 10:33 AM on May 15, 2025,  Jio Financial Services share price was trading at ₹267.55, a 0.01% increase, with a 16.26% decline over the past six months and a 24.56% drop over the past year.

Demand and Bidding

The base issue was set at ₹500 crore, with an additional ₹500 crore through a greenshoe option. The total subscription stood at around ₹1,500 crore, three times the base issue. The company accepted the full ₹1,000 crore.

According to news reports, the 7.19% yield is around 7-8 basis points lower than what other top-rated non-banking finance companies are offering on similar bonds in the market.

ICICI Securities Primary Dealership acted as the sole arranger for the issue. Most of the demand reportedly came from mutual funds due to the shorter maturity period. Some insurance firms also participated.

Previous Fundraising 

Prior to this bond issue, Jio Credit had raised ₹1,000 crore through three-month commercial papers at a yield of 7.8%. Jio Credit was earlier known as Jio Finance. It is involved in various lending activities, including home loans, loans against property, loans against shares and mutual funds, vendor financing, working capital loans, and term loans.

The bond issue came shortly after the Reserve Bank of India cut the repo rate by 25 basis points in April 2025, following a previous 25 bps cut in February.

Read more: Jio Financial Services and BlackRock Inject ₹66.5 Crore into Jio BlackRock Investment Advisors

Conclusion

The bond issuance marks Jio Credit’s entry into the domestic debt market. The company had earlier deferred bond plans in March due to rising yields, but proceeded this time following more favourable interest rate conditions.

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