Indian mobile operator Reliance Jio Infocomm, a subsidiary of Reliance Industries, has inked a US$750m loan backed by Korea Exim Bank to buy equipment.
Reliance Jio, which is scheduled to launch mobile services in the first quarter of 2015, will…
Indian mobile operator Reliance Jio Infocomm, a subsidiary of Reliance Industries, has inked a US$750m loan backed by Korea Exim Bank to buy equipment.
Reliance Jio, which is scheduled to launch mobile services in the first quarter of 2015, will acquire telecoms equipment from South Korean vendor Samsung.
The 12-year loan is Korea Exim’s largest telecoms infrastructure financing and its largest deal in India, according to a Reliance Jio statement today.
Korea Exim is funding US$440m of the loan. The remaining US$310m is financed by 11 relationship banks: HSBC, ANZ, Banco Santander, The Bank of Tokyo-Mitsubishi-UFJ, BNP Paribas, Credit Agricole, Commerzbank, ING, JP Morgan, Mizuho and SMBC. NongHyup Bank also worked on the deal.
Reliance Jio, the latest entrant in India’s crowded mobile market, paid US$1.7bn to secure 1,800 MHz spectrum in an auction in February, adding to its existing 2,300 MHz frequencies. In recent months, the company has also inked multiple infrastructure-sharing agreements with rival operators, as it gears up for its 4G launch.
It will cost Reliance Jio an estimated Rs700bn (US$11.46bn) to roll out its network, local reports stated.
Last month, it was reported that the company was looking to raise about Rs90bn (US$1.46bn) in overseas debt financing.
