RJIL raises Rs 25 billion in corporate bonds from Axis Bank

Reliance Jio Infocomm Limited (RJIL) has raised Rs 25 billion in corporate bonds from Axis Bank over a term of five years at an interest rate of 8 per cent. The proceeds have been earmarked for RJIL’s proposed expansion. This is the largest deal on the electronic bidding platform this fiscal year. Under the new regulatory norms effective since the beginning of 2018-19, every borrower has to go through electronic bidding platforms (available in exchanges) unlike the earlier practice of personal negotiations with investment bankers. Earlier, Reliance Industries Limited’s board approved raising Rs 200 billion through debt in tranches. RJIL’s capex needs include about Rs 250 billion to be paid to Reliance Communicationsfor wireless assets, including spectrum, towers, optic fibre and switching nodes.