Reliance Jio raises $500 million three Japanese banks via Samurai loans

Reliance Jio Infocomm Limited (RJIL) has reportedly raised $500 million from three Japanese banks – Bank of Tokyo Mitsubishi UFJ (MUFG), Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho Bank – under a syndicated Samurai loan form. 

The floating rate loan is for a seven-year period, said the company in an official statement.

Earlier, news agency PTI reported that RJIL is in talks for loans with the three banks.

"Reliance Jio is in discussion with MUFG (formerly The Bank of Tokyo-Mitsubishi UFJ) , Mizuho Bank and Sumitomo Mitsui Banking Corporation to raise $500 million," sources in the know of the development told PTI.

Seeking to diversify its borrowing base, RJIL entered the new market for borrowing to utilise funds for capital expenditure, such as paying for the wireless assets of Reliance Communications.

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

The Mukesh Ambani firm has also signed agreement to buy mobile business assets of Reliance Communications-- the company led by his younger brother Anil Ambani, for around Rs 25,000 crore.

The source did not mention the timeline for raising the loan from Japanese banks and said, "The agreement is yet to be signed."

With PTI inputs