Business/Economy

Reliance Jio raises Rs 3250 crore for Capex plans from Japan banks

Reliance Jio raises Rs 3250 crore for Capex plans from Japan banks

Telecom operator Reliance Jio has signed an agreement to mobilize JPY 53.5 billion or INR 3,250 crore as samurai term loan with 7-year bullet maturity from Japan-based banks.

The largest 4G operator in India, Reliance Jio with more than 160 million subscribers, will use the funds for its ongoing capital expenditure (Capex).

This funding deal represents the largest samurai loan (low-interest loans from Japanese investors) for an Asian corporate, Mukesh Ambani said.

RJIL said in a statement that "Reliance Jio Infocomm Limited has signed an approximately JPY 53.5 billion samurai term loan with 7-year bullet maturity. The facility is guaranteed by Reliance Industries Limited and will be used for funding RJIL's ongoing capital expenditure." The statement further revealed at the exchange rate of 60 paise per Japanese yen, the loan value comes to around Rs 3,248 crore. This deal represents the largest samurai loan (low interest loans from Japanese investors) for an Asian corporate.

Reliance Jio board had approved raising of around Rs 20,000 crore in debt last month. The company has invested over Rs 2 lakh crore in the mobile business which has garnered over 168 million customers.