More reports on: Reliance Industries, Telecom

Reliance Jio raises $750-mn, 12-year loan from S Korean lenders

13 May 2015

Reliance Jio Infocomm Limited (RJIL), the telecom arm of Mukesh Ambani-led Reliance Industries Ltd (RIL) has signed a $750-million, 12-year syndicated loan facility backed by Korea Trade Insurance Corporation (K-sure).

The loan is guaranteed by RIL and will be primarily used to finance goods and services procured from Samsung Electronics and Ace Technologies Corp, which are being sourced for the infrastructure roll out of RJIL, Reliance Industries said in a release.

The loan is the first facility by K-sure with RJIL and the second loan arranged by K-sure with the Reliance Group (including RIL and RJIL). It is also the second round of financing for RJIL from Korean export credit agencies (ECAs) and the third overall between the group and Korean ECAs in three years, Reliance said.

The facility is funded by 9 relationship banks of Reliance, including The Hongkong and Shanghai Banking Corporation Limited, Australia and New Zealand Banking Group Limited, Banco Santander SA, The Bank of TokyoMitsubishi UFJ Ltd, JPMorgan Chase Bank NA, Mizuho Bank Ltd, and Sumitomo Mitsui Banking Corporation, ING Bank and DZ Bank AG.

The loan, K-sure's largest deal in India, has a tenor of 12 years, including a 2-year availability period and 10 year repayment period thereafter.

Reliance Jio Infocomm Limited (RJIL), holds a pan-India Unified Licence, which authorises the company to provide all telecommunication services except global mobile personal communication by satellite service, RIL stated.

In addition to the pan-India 2300MHz spectrum, RJIL has spectrum in either 800MHz or 1800MHz or both in 20 out of total 22 circles in the country. RJIL plans to provide seamless 4G services using LTE in 800MHz, 1800MHz and 2300MHz bands through an integrated ecosystem.

RJIL said it is in the process of setting up a pan-India telecom network to provide 4th generation internet connectivity,  communication and various digital services.

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