Reliance Jio Secures Debt From Japanese Banks, One Of The Largest By Any Asian Corporate
The deal represents the largest samurai loan raised by any corporates in Asian continent ever.
Telecom unit of Reliance Industries, Reliance Jio Infocomm Ltd., has raised $498.5 million (about Rs 3,250 crore) through a loan from Japanese banks including Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation (SMBC).
This is one of the largest investments done on any Indian telecom company till date.
This capital raise will help Reliance Jio backed by Reliance Industries, in its capital expenditure towards infrastructure and expansion of the network.
“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 reported Livemint.
JIO user base increased to 168 million customers.
“The deal represents the largest samurai loan raised by any corporates in Asian continent ever. A samurai loan comes relatively with a lower interest rate than usual debts offered by banks and other firms because of ample liquidity of Japanese investors.”
Jio board earlier approved Reliance Jio to raise Rs 20,000 debt in 2017. So far, Jio had invested over 30 billion in the 4G cellular network.
The group is in talks with the US chipmaker Qualcomm to make laptops with built-in cellular connection for the Indian market.
JIO has also extended its prime membership for 1 year to its JIO prime members.
Reliance Jio also 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.