In a strategic move to capitalise on lower market borrowing costs, Jio Credit, formerly known as Jio Finance, successfully raised Rs 1,000 crore through its maiden bond issuance on May 14, 2025, at a coupon rate of 7.19%, according to sources familiar with the development.

This fundraising comes at a time when the Reserve Bank of India (RBI) has signaled a more accommodative monetary policy stance, resulting in reduced repo rates—a move that appears to be encouraging more favourable debt financing conditions in the Indian market.

Issue Details and Market Response

Jio Credit’s bond issue witnessed robust investor participation, receiving more than three times the bids of the base issue size of Rs 500 crore. Eventually, the company accepted the full amount, including the greenshoe option of Rs 500 crore, to raise a total of Rs 1,000 crore.

The bonds will mature in 2 years and 10 months, with the redemption date set for March 15, 2028. The issue was solely arranged by ICICI Securities Primary Dealership, demonstrating the company's ability to mobilize resources through credible institutions in the Indian financial ecosystem.

What makes this bond issue notable is that the coupon rate of 7.19% was 7–8 basis points lower than the yields offered by other top-tier non-banking financial companies (NBFCs) currently raising funds in the market. This suggests that Jio Credit was able to secure funding at relatively lower costs, aided by favorable macroeconomic conditions and its market reputation.

Timing of the Issue Aligned with RBI Rate Cuts

The decision to issue bonds now is aligned with the recent monetary policy developments. The RBI cut the repo rate by 25 basis points on April 9, the second consecutive cut in 2025, taking the total reduction to 50 basis points since February. Along with this, the central bank changed its policy stance from ‘neutral’ to ‘accommodative’, pointing to moderate growth and a benign inflation outlook as key drivers.

This rate-cut environment benefits companies like Jio Credit looking to issue bonds, as it lowers the cost of capital. According to market analysts, further repo rate cuts of up to 50 basis points are expected in 2025, driven by inflation falling below the RBI’s medium-term target of 4%.

These macroeconomic tailwinds have created favourable conditions for both corporates and state/central governments to raise capital from the bond market at reduced interest rates.

Previous Fundraising Efforts by Jio Credit

Prior to this bond issuance, Jio Credit had raised Rs 1,000 crore in March 2025 through its maiden commercial paper (CP) offering. The CPs had a tenure of three months and were issued at a yield of 7.8%, indicating that the company has already been actively tapping short-term debt markets.

With this new bond issue, Jio Credit has extended its debt maturity profile and diversified its funding sources, signalling long-term strategic financial planning.

What This Means for the NBFC Sector and Investors

This bond issuance has wider implications beyond Jio Credit. It demonstrates the growing confidence of the debt market in NBFCs, especially those backed by large corporate groups like Reliance.

• For investors, the oversubscription of the issue points to strong demand for quality debt papers, particularly in a falling interest rate environment.

• For NBFCs, it reinforces the viability of capital markets as a funding source amid tighter bank lending standards.

Market experts suggest that more NBFCs may look to tap the bond market in the coming months, especially if the RBI continues with its dovish monetary policy stance.

Strategic Outlook for Jio Credit

The bond issuance aligns with Jio Credit’s broader strategy to build a strong balance sheet, diversify funding, and reduce cost of capital. As Jio Credit scales up operations in consumer finance, digital lending, and other NBFC verticals, access to cheaper long-term capital becomes a critical enabler of growth.

Furthermore, leveraging the bond market not only helps reduce dependency on short-term borrowings but also signals financial discipline and transparency to rating agencies and stakeholders.

Conclusion: A Timely and Strategic Move

In conclusion, Jio Credit’s maiden bond issuance is a well-timed move that capitalises on softening interest rates and a receptive debt market. By locking in Rs 1,000 crore at a competitive 7.19% coupon rate, the company has achieved a dual objective of raising long-term funds at low cost and boosting investor confidence in its creditworthiness.

With inflation easing and expectations of further RBI rate cuts, Jio Credit and other major NBFCs are likely to remain active in the debt capital markets in the months to come.

This could mark the beginning of a more vibrant corporate bond market in India, providing a win-win opportunity for both issuers and institutional investors.

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