According to an Economic Times report, the raised capital would be utilized towards buying 5G equipment from Nokia. HSBC was the lead arranger of the loan.
Finnish government-owned finance agency Finnvera reportedly provided a cover of a similar sum to insure Jio’s 5G gear supplier Nokia and the telecom company’s global lenders from future risks. The cover is expected to reduce Jio’s overall 5G gear funding costs and it will make the lender and supplier more comfortable, The Economic Times reported citing people aware of the matter.
The loan, which is about $1.5-2 billion, "...is structured in a way that carries with it an implied rate of interest arrived over the tenure of the loan,” said the Economic Times report, quoting one of the people aware of the matter as saying."
Earlier about a month back, Jio raised $2 billion from BNP Paribas to purchase 5G equipments from Ericsson.
As part of its 5G roll out strategy, Reliance Jio is poised to bring 5G prepaid and postpaid plans to consumers by December.
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