Reliance Jio Infocomm has signed a US$750m loan backed by Korea Trade Insurance Corporation (K-sure) to fund goods and services from Samsung and Ace Technologies.
The loan’s 12-year tenor includes a two-year availability period followed by a 10-year…
Reliance Jio Infocomm has signed a US$750m loan backed by Korea Trade Insurance Corporation (K-sure) to fund goods and services from Samsung and Ace Technologies.
The loan’s 12-year tenor includes a two-year availability period followed by a 10-year repayment period, the nascent operator, a unit of conglomerate Reliance Industries, said in a statement.
The facility is funded by nine relationship banks: HSBC, ANZ, Banco Santander, The Bank of Tokyo-Mitsubishi, JP Morgan Chase, Mizuho, Sumitomo Mitsui, ING and DZ.
Jio is buying the goods and services to roll out infrastructure needed to launch services.
The transaction marks the operator’s second financing round with Korean export credit agencies and Reliance Industries’ third, which Jio said highlights their growing business with Korean organisations.
It also represents K-sure’s largest deal in India.
Jio is the first operator to hold a pan-India unified licence, allowing it to provide all telecoms services other than global mobile personal communication via satellite.
It says it has made “significant progress” in building its LTE business, including physical network infrastructure, systems, processes and a sales and distribution network.
The company has invested an estimated Rs860bn so far on its yet-to-be-launched services.
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