Reliance Jio Infocomm Limited is reportedly planning to raise up to Rs 80 billion by way of selling corporate bonds in the local market. This move by the operator is primarily intended to clear a portion of its past dues for purchasing spectrum in the 2014 and 2015 auctions.
The bonds are likely to come in five-year and three-year or two-year tenors. These bonds are expected to bear interest rates in the range of about 6.2 per cent and 5.35 per cent.
As per industry sources, Jio is in talks with a group of lenders, including Axis Bank, ICICI Bank, HDFC Bank and State Bank of India, for the five-year series that aim to raise up to Rs 50 billion. For another Rs 30 billion, top mutual funds have been approached for the papers with two years or three years maturity.
The operator may also use a portion of the proceeds to refinance some short-term loans raised earlier through commercial papers.
Jio has recently cleared its 2016 spectrum dues. It has, however, not yet cleared past dues relating to spectrum purchases in the 2014 and 2015 auctions. In the 2014 auction, Jio had bought spectrum worth Rs 110.54 billion, of which Rs 36.48 billion was paid upfront. In the 2015 sale, it had bought airwaves worth Rs 100.77 billion, of which Rs 26.95 billion was upfront payment.
