RIL to use over a third of Jio Infratel InvIT proceeds to repay banks

Mumbai: State Bank of India, Bank of Baroda and HDFC Bank are among those set to receive more than a third of the Rs 25,000 crore that Reliance Jio Infratel, the telecom tower business of Reliance Industries, plans to raise through a listing of the business as an investment trust, four people familiar with the matter said.

Reliance Industries (RIL), which is deleveraging the business by monetising some assets including the telecom business, is also likely to receive nearly Rs 10,000 crore from the listing as the trust is likely to repay some loans given by the parent company, the people said.

The transaction, which is likely to be completed before the end of the current fiscal year, will see RIL reduce debt and will allow Reliance Jio Infratel (RJIPL) — a special purpose vehicle (SPV) to house the company’s tower assets — to borrow funds on its own.