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.

reliance-jio-fund-raise

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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Respond2AjiNikhil Mumbai-PuneNitinKevin BloreProxima Midnight Recent comment authors
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Nitin
Nitin

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

Screenshot_20180414-214720_MX Player Pro.jpg
Proxima Midnight
Proxima Midnight

What is this Nitin?

Nitin
Nitin

Use of technology by Jio.

Kevin Blore
Kevin Blore

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

Nitin
Nitin

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

Respond2Aji
Respond2Aji

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

Pallab-WB
Pallab-WB

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).

Arena
Arena

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

Sunny | Lucknow
Sunny | Lucknow

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

thilak
thilak

MY opinion

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

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