Reliance Industries to not extend guarantee on Jio debt transfer to InvITs

RIL to issue 'letter of comfort' to lenders on $15.4-bn debt

Reliance Industries (RIL) will not extend a guarantee on the debt that will be transferred along with Reliance Jio’s assets to infrastructure investment trusts (InvITs).

Banks will, in fact, receive only a “letter of comfort” from RIL for the medium term.

RIL, with its far better credit ratings, had raised debt from the country’s lenders for the launch of its telecom services subsidiary, Reliance Jio and given a guarantee on these loans.

In order to deleverage its balance sheet, RIL had said on April 1 that it would transfer its fibre optic cable infrastructure and tower infrastructure to two InvITs.

The tower assets are