Jio Finance Gears Up for ₹1,000 Crore Fundraising via Maiden Bond Issue

As per Business Standard reports, Jio Finance is preparing to enter the domestic capital market next week with a bond issue worth up to ₹1,000 crore. The non-bank financial company (NBFC), a wholly-owned arm of Jio Financial Services, aims to capitalise on favourable interest rate dynamics following recent policy changes by the Reserve Bank of India (RBI).

Bond Structure and Market Position

The planned bond issue comprises a base size of ₹500 crore and an additional ₹500 crore available through a green-shoe option. The bonds are set to mature in two years and ten months, with the company expecting a coupon rate of 7.19%. ICICI Securities Primary Dealership will act as the sole arranger for the issue. 

Jio Finance had initially planned a ₹3,000 crore bond issue in March but postponed the offering due to high yields and expectations of a forthcoming RBI rate cut. With improved market conditions now in place, the company is set to proceed with the bond issuance.

Improved Liquidity and Market Sentiment

In April, the RBI’s monetary policy committee reduced the repo rate by 25 basis points to 6% and shifted its stance from “neutral” to “accommodative”, signalling the possibility of further rate cuts. This change, combined with RBI’s liquidity-enhancing measures such as open market operations (OMOs), has led to a surplus in the banking system’s liquidity.

Consequently, yields on bonds issued by AAA-rated public sector companies dropped below 7% in April, driven by a fall in 10-year government security yields and a more optimistic rate environment. Typically, a quiet period for corporate bonds, April saw nearly ₹1 trillion raised, reflecting investor confidence. In FY25, domestic companies raised a record ₹11 trillion from bond markets, surpassing the ₹10 trillion raised in FY24.

Read More: Jio Financial Shares in Focus On Strong Q4 Performance, Dividend Announcement

Jio Financial Services Share Performance 

As of May 08, 2025, at 11:50 AM, Jio Financial Services share price is trading at ₹254.85 per share, reflecting a decline of 0.49% from the previous closing price. Over the past month, the stock has surged by 13.36%.

Conclusion

With bond yields declining and liquidity conditions easing, Jio Finance is set to make a timely entry into the capital market. Backed by a strong credit rating and favourable macroeconomic indicators, the company aims to raise ₹1,000 crore through its upcoming bond issue.

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