Reliance Jio to Raise Rs 2,000 Crore from Bonds for 4G Expansion

Reliance Jio Infocomm is opting for the way of Bonds to raise about Rs 2,000 crore. This move came after Reserve Bank of India made an escalation to the policy rate for the first time in more than four years last week. This info came from multiple market insiders. The company conveyed the information through a dedicated communique to qualified institutional buyers via stock exchanges that the bonds would have a tenure of these bonds would be three years and will be sold in the exchange with a coupon of 8.7%. One of the sources who made the information public also added “The company will receive subscriptions whoever bids at 8.7%. It would be up for bidding on Thursday.”

reliance-jio-fundraise-rs2000-crore

This new development of bond issuance by Jio is creating a new wave in the market since even the lenders who are wary of lending due to the unsettling condition in the tech and telecom market are taking an interest in this deal. A state-owned back which was first not likely to lend due to high risk might chip in some cash to buy the entire pile because of the triple-A rating backing the company.

As per an ET report, the sources said that the money raised would be used for the telco’s expansion which already has 186.6 million subscribers in the country. When posed a question from ET, Reliance Industries, the parent company of Reliance Jio Infocomm did not respond to any queries.

The Mukesh Ambani led telco has been on a funding frenzy in order to raise money for the expansion of its company. An executive highlighted that Jio is looking for chances to diversify its borrowing bases As per the exec’s consensus entering a new market for borrowing is supposed to help the company in the long run.

Not so long ago, Reliance Jio has already 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. The loan which Reliance Jio signed upon is for a seven-year period. As per the annual reports of FY 2018-19, Reliance Industries has sought shareholder approval to raise an amount as high as Rs 20,000 crore through a non-convertible debenture (NCD) issue in 2018-19.

The company said “The board may, at an appropriate time, consider offering or inviting subscriptions for secured or unsecured redeemable non-convertible debentures, in one or more series or tranches on private placement, issuable or redeemable at par, in order to augment long-term resources for financing inter alia the ongoing capital expenditure and for general corporate purposes.”

With the fresh Rs 2,000 crore, Jio might expand its 4G footprint in the country as the company is planning to cover 99% of the population in the country by the end of FY19.

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Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

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FarazRinuGirish Gowda | BengaLuruSudhakardragonmonk Recent comment authors
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T A
T A

Please explain me:
My current jio plan is 498 which gives me 2GB/day it valid till 4 Aug, I recharged again 498 during double dhamaka,I haven’t redeem the recharge, So I haven’t got extra 1.5 GB/day.
I talked to CC they said I will get only after redeemed,So my que is
Will I get 4 GB + 1.5 GB data & validity would be decreased?
Or I will get 1.5GB extra data & my plan will activate after 4 Aug, please explain me anyone.
Thanks

T A
T A

See here, current plan validity is 4Aug & I want my new plan to start from 5th Aug not now for 1.5GB/day extra benefits

Screenshot_2018-06-14-20-33-39.jpg
Rinu
Rinu

Don’t do anything till 5th August. On 4th August, your new 498 2GB/day plan will get activated automatically. Then on 5th August, you may activate the 2GB/day extra data voucher, so that, in total you will get 4GB/day from that day. Please note that in your plan, the extra data voucher is 2GB/day and not 1.5GB/day.

Faraz
Faraz

& if you activate now. Your voucher validity will be till 4 August and you will be in loss.

Sudhakar
Sudhakar

Recharged plan will stary after the end of current pack.

Girish Gowda | BengaLuru
Girish Gowda | BengaLuru

The extra voucher after redemption will only be valid till your current plan is valid. So redeem it after 5th August.

Suman(Kolkata)
Suman(Kolkata)

OT : Vodafone starts installing 4G only site in kolkata circle

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dragonmonk
dragonmonk

@suman Just curious. How do you get this tower-level info?

Suman(Kolkata)
Suman(Kolkata)

from Tarang Sanchar website

dragonmonk
dragonmonk

@suman @kunal @sachin Thank you.

Kunal
Kunal

Tarang sanchar website

sachin
sachin

tarang sn4 website

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