Jio eyes $2.5 billion overseas loans for 5G network gear buys

Mumbai & Kolkata: Reliance Jio is in talks to raise around $2.5 billion (about Rs 20,600 crore) through an offshore syndicated loan to fund 5G network gear buys from Sweden’s Ericsson and Finland’s Nokia, multiple people aware of the matter said. The talks come with India’s telecom market leader looking to roll out the next-gen mobile broadband service across India in the next 18 months.

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, the people added. Going forward, Jio may even upsize the loans as more banks may join the syndication.