Reliance Jio raises about Rs3,250 crore from Japanese banks to fund capex
Reliance Jio says has raised $498.5 million from Japan’s MUFG , Mizuho Bank and Sumitomo Mitsui in debt. The facility is guaranteed by Reliance Industries
New Delhi: Reliance Jio Infocomm Ltd, the telecom unit of Reliance Industries Ltd, said it has raised $498.5 million (about Rs 3,250 crore) through a loan from Japanese banks.
“Reliance Jio Infocomm Limited has signed an approximately JPY 53.5 billion samurai term loan with 7 year bullet maturity. The facility is guaranteed by Reliance Industries Limited and will be used for funding RJIL’s ongoing capital expenditure,” RJIL said in a late night statement on Friday.
This deal represents the largest samurai loan (low interest loans from Japanese investors) for an Asian corporate, the statement said.
“The facility has been fully underwritten by Mizuho Bank, Ltd., MUFG Bank, Ltd. and Sumitomo Mitsui Banking Corporation (SMBC) Singapore branch and will be shortly launched into syndication,” RJIL said.
Last month, the Reliance Jio board had approved raising of around Rs20,000 crore in debt. The company has invested over Rs2 trillion in the mobile business which has garnered over 168 million customers.
The Mukesh Ambani firm has also signed agreement to buy mobile business assets of Reliance Communications — the company led by his younger brother Anil Ambani — for around Rs25,000 crore.
The 4G mobile service provider Reliance Jio said that the network of the company is future ready and can be easily upgraded to support even more data, as technologies advance on to 5G, 6G and beyond.
“Jio will bring transformational changes in the Indian digital services space to enable the vision of Digital India for 1.2 billion Indians and propel India into global leadership in digital economy,” the statement said.