Fledgling Indian mobile operator Reliance Jio plans to raise up to Rs30bn (US$460m) in a private placement of secured, redeemable, non-convertible debentures as it gears up for its commercial launch.
Fledgling Indian mobile operator Reliance Jio plans to raise up to Rs30bn (US$460m) in a private placement of secured, redeemable, non-convertible debentures as it gears up for its commercial launch.
Jio, part of billionaire Mukesh Ambani’s (pictured) Reliance Industries, said in a brief filing that its board of directors and shareholders have approved the issue. No further details were provided.
The operator says it has invested nearly Rs340bn (US$5.2bn) in spectrum ahead of its planned commercial launch in December this year, giving it the largest amount of unliberalised spectrum in the country.
Jio has also built out a fibre optic network stretching some 250,000 route kilometres and signed multiple infrastructure sharing pacts with rivals.
Earlier this year, Jio inked a 12-year US$750m loan backed by Korea Trade Insurance Corporation (K-sure) to fund goods and services from Samsung and Ace Technologies. This facility was funded by nine banks:HSBC, ANZ, Banco Santander, The Bank of Tokyo-Mitsubishi, JP Morgan Chase, Mizuho, Sumitomo Mitsui, ING and DZ.
Analysts have speculated that Jio’s entry could drive down prices in India’s already ultra-competitive mobile sector, which already has among the lowest tariffs worldwide.