RIL, Jio set record in syndicate loan space

New Delhi: Reliance Industries Ltd (RIL) and its telecom arm Jio Infocomm have raised a total of $5 billion in back-to-back foreign currency loans, the largest syndicated loan in India’s corporate history, sources said.

Reliance last week raised $3 billion from 55 banks and Reliance Jio Infocomm secured additional credit of $2 billion from 18 banks, sources aware of the development said. The $3 billion financing closed on March 31 and the add-on facility of $2 billion was secured on Tuesday, they said. Reliance will mainly deploy the funds raised towards its capital expenditure, while Jio would put the money to finance its nationwide 5G network rollout.

The $2 billion add-on will be split equally between Reliance and Jio and is likely to be wrapped up by the end of April, they said. The primary syndication of $3 billion involved around 55 lenders, including nearly two dozen Taiwanese banks as well as global giants such as Bank of America, HSBC, MUFG, Citi, SMBC, Mizuho, and Credit Agricole.