Reliance Jio Raises Rs 3,250 Crore From Japanese Banks To Fund Capex
Telecom operator Reliance Jio Infocomm Ltd. has signed an agreement to raise about Rs 3,250 crore as samurai term loan from Japan-based banks.
Reliance Jio has signed an approximately 53.5 billion Japanese yen samurai term loan with 7-year bullet maturity. The facility is guaranteed by Reliance Industries Ltd. and will be used for funding ongoing capital expenditure.Reliance Jio Press Release
At exchange rate of 60 paise per Japanese yen, the loan value comes to around Rs 3,248 crore.
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, MUFG Bank, and Sumitomo Mitsui Banking Corporation’s Singapore Branch and will be shortly launched into syndication.Reliance Jio Press Release
Last month, the Reliance Jio board had approved raising of around Rs 20,000 crore in debt.
The company has invested over Rs 2 lakh crore in the mobile business which has garnered over 16.8 crore customers.
The Mukesh Ambani firm has also signed agreement to buy mobile business assets of Reliance Communications Ltd. -- the company led by his younger brother Anil Ambani -- for around Rs 25,000 crore.