- Jio Financial Services is reportedly in initial talks with merchant bankers for its inaugural bond issue, targeting a fundraising between Rs 5,000 crore ($600.6 million) to Rs 10,000 crore.
- The company, created from Reliance Industries, intends to become a comprehensive financial services firm in segments like auto and home loans, competing with established entities such as Bajaj Finance.
- Bankers expect Jio Financial, due to its strong parentage, to achieve a high AAA credit rating; however, pricing for the bonds may hinge on various factors at the time of issuance.
- To establish pricing benchmarks, suggestions have been made to release shorter-term commercial papers and establish bank borrowing lines before the bond issuance, which might not exceed a five-year maturity period due to the company’s new status, delaying compliance procedures.