Home / Companies / News /  ADIA, PIF to pump in $1.01 billion in RIL's fiber assets biz

MUMBAI: Abu Dhabi Investment Authority and Saudi Arabia's Public Investment Fund (PIF) will jointly invest $1.01 billion in an infrastructure investment trust (InvIT) that holds Mukesh Ambani promoted Reliance Industries Ltd.'s fibre-optic assets.

Jio Digital Fibre Pvt. Ltd. owns Jio'a fibre network across the country.

ADIA and PIF have agreed to purchase units worth Rs. 3,779 crore each in the InvIT, according to a presentation by RIL.

Also, RIIHL, a subsidiary of RIL, has completed the recapitalisation of Digital Fibre Infrastructure Trust (DFIT), said RIL.

RIIHL will continue to be the sponsor of the InvIT and it is not known how much stake the two sovereign wealth funds will get in lieu of their investment in the InvIT - Digital Fibre Infrastructure Trust (DFIT).

RIL, by selling a 33% stake in its subsidiary Jio Platforms, has raised Rs. 1.52 trillion between April and August.

Among several other investors, the two west Asia sovereign funds have already invested $2.2 billion in Jio Platforms Ltd.

Fibre network business monetisation falls exactly in line with RIL’s original plan to make Jio become an asset-light digital services company and save significantly on costs as the group is gearing up to offer affordable 5G services.

Last year, Reliance received a 25,215 crore investment in an InvIT holding its telecom tower assets from a consortium led by Canada’s Brookfield Asset Management.

As of 31 March, 2020, Jio Digital Fibre operates optic fibre cable network of nearly 17.37 million fibre pairs per kilometre (FPKM) across the country.

In March 2019, Reliance’s telecom subsidiary Reliance Jio Infocomm demerged its fibre and tower businesses into Jio Digital Fibre Pvt. Ltd and Reliance Jio Infratel Pvt. Ltd.

This has helped Reliance take these assets off its balance sheet. The two entities now operate independently, with Reliance Jio Infocomm as the sponsor.

According to the current plan, RIL will continue as the sponsor of the InvIT and retain a minimum 15% stake, while the remaining 85% could be sold to global investors, including ADIA and PIF.

RIL had recently said that to augment connectivity Jio is rolling out a high-speed, low-latency optical fibre network to more than 50 million customers.

RIL's Jio is also gearing up to roll out 5G services across India. In some of the metros such as Mumbai, the company has already started offering 5G internet services.

According to RIL, the company's digital services arm Jio Platforms has built significant capabilities in areas like cloud computing, big data analytics, AI and machine learning, blockchain, AR or VR and IoT.

In the retail space too, RIL has been strengthening its ability to compete with Amazon and Walmart's Flipkart. RIL's retail arm RRVL has raised money from 8 investors in just a month's time.

But RRVL's Rs. 24,713 crore deal with Future Group is facing an obstacle as SIAC has granted an interim stay to Amazon in an arbitration case, restraining Future Group from selling any asset to RIL.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
Get alerts on WhatsApp
My ReadsRedeem a Gift CardLogout