Reliance Jio to raise $2.5 billion overseas loans for buying 5G network gear

According to industry sources, Reliance Jio is planning to raise $2.5 billion (about Rs 206 billion) through an offshore syndicated loan to fund 5G network gear buys from Ericsson and Nokia. To this end, Jio is in talks with the likes of Bank of America, BNP, HSBC and Societe Generale (SocGen) to arrange the overseas loan, which is likely to be priced after adding an estimated 65 basis points over the secured overnight financing rate (SOFR), a new global rate gauge.

As per sources, going forward, Jio may even upsize the loans as more banks may join the syndication. Meanwhile, the tenor could range from 3-7 years.

Separately, two Europe based export credit agencies, EKN and Finnvera, may issue guarantees to the global lenders for extending the offshore loan to Jio.