Reliance Jio Raises $500 Million via Samurai Term Loan and Rs 2,500 Crore via Domestic Bonds

Reliance Jio Infocomm (RJIL), the child company of Reliance Industries, has signed a JPY 53.5 Billion ($500 Million) Samurai Term Loan with seven-year bullet maturity (the “Facility”). The Facility is guaranteed by Reliance Industries Limited and will be used for funding RJIL’s ongoing capital expenditure. This deal represents the largest Samurai loan for an Asian corporate. The Facility has been fully underwritten by Mizuho Bank, Ltd., MUFG Bank, Ltd. and Sumitomo Mitsui Banking Corporation Singapore Branch and will be shortly launched into syndication.

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On the sidelines of Samurai term loan raising, the largest data operator has raised Rs 2,500 crore from Axis Bank, which will be the sole arranger for the five-year money. As reported by Economic Times, the new entrant has now made its largest domestic transaction in this financial year. ET received this news from a couple of people familiar with the matter, citing that the deal has been concluded this week.

“We have raised the money,” said a spokesperson to the publication. “The bonds have offered a rate of 8%, and the proceeds would be used for its proposed expansion,” added the report.

Shashikant Rathi, head treasury at Axis Bank (the sole arranger) confirmed the news as “This (Reliance Jio) is the largest deal under the electronic bidding platform this year.” Furthermore, he added that Jio raised the money to support its network expansion in the country.

As you might be aware of the new regulatory norms which came into effect at the start of this financial year, every borrower has to go through electronic bidding platforms which are available in exchanges, not like the earlier practice of personal negotiations with investment bankers.

Reliance Jio is currently on a fund-raising spree because it’s looking to expand its network coverage. Jio has been investing a lot in expanding the network, and it spent close to Rs 7,000 crore as capex in the December quarter, and the same capex is also expected to be used in the quarter that ended on March 31.

The telco already bought the wireless assets of Reliance Communications for a deal of around Rs 18,000 crore and last month, RIL’s board approved the fundraising of Rs 20,000 crore which could be used to clear out the RCom’s deal and also for capital expenditure requirements of Jio.

“Our network continues to rapidly expand across the country. And in the next 12 months, Jio services will cover 99% of our country’s population,” Mukesh Ambani said last year.

Reliance Jio currently has over 175 million subscribers, and the number is expected to reach 225 million by the end of 2018.

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23 Comments on "Reliance Jio Raises $500 Million via Samurai Term Loan and Rs 2,500 Crore via Domestic Bonds"

 

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Nitin
April 14, 2018 9:48 pm 9:48 PM

Jio testing JioBroadcast app. Live streaming without internet using eMBMS technology. Crystal clear HD quality.

Screenshot_20180414-214720_MX Player Pro.jpg
Kevin Blore
April 15, 2018 1:13 am 1:13 AM

OMG.. is it true ?can u explain about this? How to see?

Nitin
April 15, 2018 1:21 pm 1:21 PM

The app is not in play store but given by one of my friend at Jio centre.

Respond2Aji
April 15, 2018 6:38 pm 6:38 PM

Nithin, can you please post a link to this app? So that users can also get a taste of this.

Proxima Midnight
April 15, 2018 1:08 am 1:08 AM

What is this Nitin?

Nitin
April 15, 2018 1:22 pm 1:22 PM

Use of technology by Jio.

Pallab-WB
April 14, 2018 3:42 pm 3:42 PM

Someone please suggest me a good TV under 15000. Confused between MI TV 4A 32? and VU 32? TV. Anyone tell me which one is better in terms of Picture Quality(nothing else).

thilak
April 14, 2018 10:35 pm 10:35 PM

MY opinion

First choice VU 4K
second choice MI
Third one recent launch Thomson TV(please check service center avl your area)

Sunny | Lucknow
April 14, 2018 7:56 pm 7:56 PM

Nothing beats LG when it comes to flat panels. Now I don’t know what can you get in that amount.

Arena
April 14, 2018 5:40 pm 5:40 PM

What ever you need to choose minimum 1080p is compulsory in 2018 and for future use….avoid 720p if u can

Ravi
April 14, 2018 12:57 pm 12:57 PM

Where the hell these money goes? Their Network going down day by day….

Arena
April 14, 2018 5:50 pm 5:50 PM

Network goes down bcz more usage. For new sites more local permissions, site location, revenue feasibility must be addressed. Only solution is more spectrum in 850/1800 could fix. Still telecoms need to cover every place with 2300mhz bcz for 5g it will be 3300mhz…I think this could change post Jio finer.

Nikhil Mumbai-Pune
April 15, 2018 5:05 pm 5:05 PM

There is no spectrum left in band 3/5!!!!!! What to do?Only spectrum left in Band 1 and Band 41 (which I guess will be taken by Idea-Vodafone or Airtel)!!!!!Band 1 will be taken by Jio!!!!!Only option is to go with VoLTE on 900Mhz and free up 2G spectrum at the earliest!!!!!That will help Airtel!!!!! Vodafone- Idea is close to shut down as Vodafone is hardly doing anything!!!!!They have shut off many towers!!!!!

Ravi
April 14, 2018 7:20 pm 7:20 PM

Hope so..jio must work on correct installation and utilization of bts sites across country..

Kevin Blore
April 15, 2018 9:58 am 9:58 AM

When compare to other operators, jio use small and less number of antennas on their tower why?

This is one of reason their signals are weak inside building on any band and coverage also less than a kilometers..

Even after two years they are not thought to change their bts installation method results more complaint from customers..

Their official Facebook and Twitter are flooded with complaints about low speed and coverage…

wpDiscuz