Khaitan & Co acted as the legal counsel to Jio Credit Limited, a subsidiary of Jio Financial Services Limited, in relation to its maiden issuance of secured, rated, listed, redeemable, non-convertible debentures aggregating up to ₹1,000 crore, on a private placement basis at a cutoff yield of 7.19%.
The Khaitan team acting on this NCD issuance consisted of Manisha Shroff (Partner), Rajshekhar Upadhyaya (Principal Associate), Siddhant Shetty (Senior Associate), Akshansh Sharma (Senior Associate) and Rishabh Kumar (Associate).
The base issue size was ₹500 crore and the remaining was the greenshoe option. The company received bids worth ₹1,500 crore, triple the base issue.
The debentures have been secured by way of a first ranking pari passu charge on a pool of book debts / receivables of Jio Credit Limited and the proceeds of the issue will be utilised towards augmenting Issuer's long-term resources and for general corporate purposes.
The NCD issue attracted strong interest mainly from mutual funds due to the shorter maturity period of 2 years and 10 months and a few insurance firms also participated in the bidding process. ICICI Securities Primary Dealership Limited acted as the arranger to the Issuer.
Jio Credit Limited, formerly known as Jio Finance Limited, operates as the non-banking financial company (NBFC) arm of Jio Financial Services Limited, itself a demerged entity from Reliance Industries Limited. Headquartered in Mumbai, Jio Credit offers a range of financial products, including home loans, loans against property, loans against mutual funds and shares, vendor financing, working capital loans, and term loans.
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