Reliance Jio has raised Rs 2,000 crore through five year bonds via private placement. The non-convertible debentures (NCDs) carry a coupon of 8.32% payable annually. The proceeds of of the issue will be used by Reliance Jio for rolling out a state-of-the-art digital services business in India, the company said.
The transaction was fully subscribed within minutes of opening and was eventually over-subscribed with a total book size in excess of Rs 3500 crores, Reliance Jio said. Key investors include the prominent asset management companies and banks.
Reliance had announced the bond issue in April, but had said it was looking to raise Rs 2250 crore.
In October last year, Jio raised Rs 3000 crore by issuing secured redeemable non-convertible debentures to aid its 4G roll out. In May 2015, the company had raised a $750 million loan (~Rs 4500 crore) from nine banks on a 10 year repayment period, to finance goods and services from Samsung and Ace Technologies. This included banks like HSBC, Bank of Tokyo-Mitsubishi, JPMorgan Chase Bank, Mizuho Bank and Sumitomo Mitsui Banking Corp among others.
Jio’s commercial launch: Reliance Jio missed commercial operation launch in March this year. Anshuman Thakur, Reliance Jio’s head of strategy and planning, parried queries on the delay of the commercial launch. “As it needs a lot of optimisation, which will lead to some disturbances in services, we want to ensure that once commercially launched the service is seamless. In fact the only delay is network optimisation. Also, we want to have a larger user-base of say a couple of millions at least (up from the present 0.5 million) to do the rollout,” he was quoted in this PTI report.
Consumption for 4G: Jio said that around 500,000 employees have been onboarded onto its test network that it rolled out for employees only in December 2015.The company added that its employees have consumed over 18 GB of data in a month.