Reliance Jio Plans To Raise $1.5 Billion From Global Lenders To Fund Its 5G Capex: Report

Reliance Jio infocomm is in talks with global lenders to raise $1.5 billion to fund its 5G capital expenditure.

The company has reached out to foreign banks including BNP Paribas, HSBC and MUFG Bank, Economic Times reported citing persons familiar with the matter.

According to the report, Reliance Jio, the largest telecom company in India, is seeking to mop up five-year money via the external commercial borrowing (ECB) route, with Reserve Bank of India having relaxed norms a few months ago.

These plans of additional fundraising by Reliance Jio are in addition to a $2.5 billion offshore syndicated loan, for which the telco is in talks with overseas lenders.

This will be used for 5G network gear purchases from Sweden’s Ericsson and Finland’s Nokia, the report said.

The $1.5-billion offshore loan may be priced after adding 150-165 basis points over the Secured Overnight Financing Rate (SOFR), a global rate gauge that recently replaced the London Interbank Offered Rate (LIBOR), the ET reported citing sources.