Reliance Jio, the broadband 4G arm of the Mukesh Ambani-led group, Thursday said it has signed a pact for a $750-million loan backed by Korea Exim Bank.
The loan is guaranteed by the promoter company Reliance Industries and will be primarily used to finance goods and services procured from Samsung Electronics for the infrastructure rollout of the 4G arm.
This is the first loan between Reliance group and Korea Exim Bank and has a tenor of 12-year term, including a 2 year availability period and repayable over 10 years thereafter.
"This deal is notably Korea Exim Bank's largest telecom infrastructure financing till date," Reliance said in a statement, adding: "It is also Korea Exim Bank's largest deal in India."
Korea Exim Bank is funding $440 million of the loan as a direct funding and the balance under a guarantee by 11 of Reliance's relationship banks.
They include The Hongkong and Shanghai Bank, Bank of Tokyo-Mitsubishi, BNP Paribas, ING Bank, JPMorgan Chase and Sumitomo Mitsui Bank.
Reliance Jio holds a pan-India licence for broadband to provide all telecommunication services except global mobile personal communication services through satellites.