INSUBCONTINENT EXCLUSIVE:
MUMBAI: Mukesh Ambani-led Reliance Jio, an emerging telecom giant, has hit the domestic corporate bond market marking it the largest
transaction in this financial year.
The top-rated company has raised Rs 2,500 crore from Axis Bank, the sole arranger for the five-year
money, two people familiar with the matter told ET
The deal has been concluded this week.
A spokesperson from Reliance Industries confirmed the matter
expansion.
"This (Reliance Jio) is the largest deal under the electronic bidding platform this year," said Shashikant Rathi, head treasury
at Axis Bank (the sole arranger), confirming the matter
has to go through electronic bidding platforms, available in exchanges unlike the practice of personal negotiations with investment
bankers.
The company is on a fund raising spree as it aims to expand its telecom empire
Jio spent about Rs 7,000 crore as capex in the December quarter and has said it expects capex levels to be similar in the ongoing March
quarter.
Jio has also tapped the yield-hungry Japanese loan market to help expand its telecom empire
It raised $500 million through a syndicated Samurai loan from three Japanese banks, including Bank of Tokyo-Mitsubishi UFJ (MUFG), Sumitomo
Mitsui Banking Corporation (SMBC) and Mizuho Bank, ET reported on Thursday
Analysts said the funds could be used to finance the capital expenditure requirements of Jio, including paying for the wireless assets of
Reliance Communications bought under a deal signed late December
at the annual general meeting.
Having invested more than Rs 2,00,000 crore and signing up about 175 million subscribers, Jio is also
capex needs include about Rs 25,000 crore to be paid to Reliance Communications for wireless assets, including spectrum, towers, optic fibre
and switching nodes.
During 2017-18, companies sold bonds worth Rs 5.75 lakh crore, compared with about Rs 6.41 lakh crore a year earlier
This is the first time since the NDA government came to power bond sales have fallen by about 10% year-on-year in FY18, reflecting weak
investor appetite.
With the Reliance Jio bond-sale, it is now expected that this year may be better for corporate bond market, dealers
