According to industry sources, Reliance Jio Infocomm Limited is planning to raise an additional $1.5 billion (Rs 123 billion) via external commercial borrowings (ECBs) to fund its 5G capital expenditure (capex). To this end, the telco has reached out to foreign banks including BNP Paribas, HSBC and MUFG Bank, etc. Additionally, the operator is seeking to mop up 5-year money via the ECB route with Reserve Bank of India (RBI) having relaxed norms a few months ago.

The latest fundraising is in addition to a $2.5-billion (Rs 206 billion) offshore syndicated loan for which Jio is in talks with overseas lenders. This $2.5-billion fund is expected to be utilised for 5G network gear purchases from Ericsson and Nokia.

Meanwhile, as per sources, the $1.5-billion offshore loan may be priced after adding 150-165 basis points over the secured overnight financing rate (SOFR), a global rate gauge that recently replaced the London Interbank Offered Rate (LIBOR).