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Jio Digital Fibre to raise Rs 270 billion in syndicated loans to facilitate demerger process

April 16, 2019
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Jio Digital Fibre Private Limited (JDFPL), Reliance Jio’s fibre unit is raising approximately Rs 270 billion in syndicated loans from a consortium of banks.  The funds will be put to use to facilitate the demerger process which will see the fibre arm emerge as a standalone subsidiary.

The funds will also be utilised to strengthen the fibre business and draw users from other companies and businesses. Other companies in the telecom industry and even those in other industries in need of fibre networks can use this.

State Bank of India is reportedly giving a loan worth Rs 100-110 billion while ICICI Bank and Punjab National Bank have committed to Rs 50 billion each. Axis Bank has offered Rs 60 billion. These loans come with a maturity period of two years, with interest chargeable at 8.35-8.85 per cent.

Earlier this month, Reliance Jio transferred control of its fibre unit, JDFPL and tower unit, Reliance Jio Infratel Private Limited (RJIPL) to two investment trusts namely, Digital Fibre Infrastructure Trust and Tower Infrastructure Trust. These infrastructure investment trusts (InvITs) have been set up by Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of Reliance Industries Limited (RIL). According to Reliance Jio, the transfer of stake will result in significant deleveraging of the consolidated balance sheet of the company as at March 31, 2019.

 
 
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