The bonds issued by Reliance Jio Infocomm Ltd (RJIL) received a record opening on the new platform, BSE Bond, on Thursday. The Mukesh Ambani-owned telco's Rs.2,000 crore bond issuance was oversubscribed to Rs. 3,700 crore of the total book size.
PTI in a report noted that the Bombay Stock Exchange's newly launched BSE Bond was exclusively for private placement of debt securities. It added that all investors, including high net worth (HNI) arrangers, were allowed to bid on it.
RJIL's five year bonds or debt securities (Non-Convertible Debentures) witnessed participation from marquee investors and from asset management companies and banks. It will bear a coupon rate of 8.32 percent per annum.
The Rs. 1,500 crore bond issue, with a green shoe option of Rs. 500 crore, meant the company is free to utilise a set amount from the over-subscription, said the news agency.
The telco said in a statement that the over-subscription was a sign of investors' belief in its service offerings and the proceeds will help it extend state-of-the-art digital services across the country.
RJIL, which is yet to start its services in the country, was the first non-financial company to raise funds digitally through an electronic bidding platform (EBP), as reported by the Mint.
Soumyo Dutta, treasurer at RIL, told PTI that BSE Bond's EBP platform was also a significant initiative to step up market infrastructure for Indian Corporate Bonds, while making the process smooth and transparent.
The BSE said the corporate debt market on its bourses has a market capitalisation of Rs. 11,25,072 crore and was the preferred destination for 90 percent of the public debt issuance by companies for five years now.