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Mukesh Ambani-controlled Reliance Jio Infocomm, on Thursday, said it had raised $750 million as a loan backed by Korea Exim Bank, to partly fund infrastructure spending.
The loan is guaranteed by Reliance Industries and will be primarily used to finance goods and services procured from Samsung Electronics for the infrastructure roll-out of Reliance Jio, the company stated. The loan is for 12 years that includes a two-year availability period and repayable over 10 years thereafter. This is the first loan between Reliance group and Korea Exim Bank. The deal is Korea Exim Bank’s largest telecom infrastructure financing till date and the largest deal in India.
According to Reliance Jio, Korea Exim Bank $440 million will be direct funding and the rest $310 million is being funded under the K-Exim covered guarantee by eleven of Reliance’s relationship banks, including The Hongkong and Shanghai Banking Corporation, Australia and New Zealand Banking Group, Banco Santander SA, The Bank of Tokyo-Mitsubishi UFJ Ltd and BNP Paribas, among others.
