Reliance Jio Infocomm, the telecom unit of Reliance Industries Limited (RIL) has now confirmed that it signed a USD 1 Billion equivalent term loan facility covered by Korea Trade Insurance Corporation (K-SURE) on June 22, 2018. The Loan Facility will be used to finance goods and services procured primarily from Samsung Electronics and Ace Technologies Corporation. Also, Jio confirmed that the Facility has a door to door tenor of 10.75 years. "The Facility is K-SURE’s largest deal in India as well as the largest deal supported by K-SURE in the telecom sector globally," said Reliance Jio in a media statement issued on Monday.
That said, this transaction marks the fourth K-SURE covered facility for Reliance group in the last five years and the second K-SURE covered facility for Jio in the last three years.
Reliance Jio also stated that the Loan Facility was arranged by Australia and New Zealand Banking Group Limited and The Hongkong and Shanghai Banking Corporation Limited. In addition, it saw participation from the following banks – BNP Paribas; Commerzbank AG; Citibank N.A.; ING Bank; JPMorgan Chase Bank, N.A.; Mizuho Bank, Ltd.; MUFG Bank, Ltd. and Banco Santander, S.A.
As mentioned, this is the second K-SURE covered facility for the telecom company in the last three years. Earlier in May 2015, the Mukesh Ambani-owned telecom company has raised a loan of USD 750 million (approx. Rs 4,800 crore). Back then, the telco raised the same to deploy the infrastructure necessary for the rollout of 4G services. Jio is yet to reveal for which purpose the telco will use the new loan facility.
