Reliance Industries’ telecom arm – Reliance Jio Infocomm – on Wednesday said it has raised a $750 million (nearly Rs 4,500 crore) loan that will be used to finance goods and services from Samsung Electronics and Ace Technologies Corp, which are being tapped for its infrastructure rollout.
“Reliance Jio Infocomm Limited… has signed a $750 million loan backed by Korea Trade Insurance Corporation (K-sure) on May 7, 2015. The loan is guaranteed by RIL and will be primarily used to finance goods and services procured from Samsung Electronics and Ace Technologies Corp, which are being sourced for the infrastructure rollout of RJIL,” Reliance Jio said in a statement.
The loan has 12 years of repayment time.
This is the first facility by K-sure with Reliance Jio and its largest deal in India, but is the second facility by K-sure with the Reliance Group – including Reliance Industries and Reliance Jio, the statement said.
This marks the second round of financing for Reliance Jio from Korean export credit agencies (ECAs) and the third overall between the group and Korean ECAs in three years, highlighting growing business with Korean organisations.
The facility is funded by nine relationship banks of Reliance, including The Hongkong and Shanghai Banking Corporation, Australia and New Zealand Banking Group, Banco Santander SA, The Bank of Tokyo-Mitsubishi UFJ, JPMorgan Chase NA, Mizuho Bank, and Sumitomo Mitsui Banking Corporation, ING Bank and DZ Bank AG.
