Reliance Jio is planning its biggest bond issue in the debt market | Techno Glob

Billionaire Mukesh Ambani’s Reliance Jio Infocomm Ltd., India’s largest mobile operator, plans to sell its largest-ever rupee bond in a bid to gain market share.

The company is seeking commitments on Tuesday for 50 billion rupees ($671 million) in notes maturing in five years with a 6.20 percent coupon, people familiar with the matter said. Jio last entered the local currency bond market in July 2018 and plans to use the proceeds from the current proposed deal to refinance financial liabilities.

Jio’s entry into the wireless market in 2016 with free calls and ultra-cheap data sparked a tariff war in the country, shrinking the telecom space from twelve players to three private sector operators as others exited, merged or went bankrupt. The top-rated firm is hitting the debt market as the country’s central bank has drained excess liquidity from the banking system, normalized policy and pushed borrowing costs for five-year AAA-rated corporate debt to a nine-month high.

Jio is gearing up to roll out 5G services in India this year after buying airwaves for nearly $8 billion in March. It has been the top bidder in recent auctions, underscoring its intention to maintain its edge over competitors.

Jio’s parent is Reliance Industries Ltd. has hired banks to invite a number of fixed-income investors to offer multi-tranche dollar bonds starting Tuesday.

This story was published on the wire agency channel without making any changes to the text. Only the name has been changed.

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