Silver Lake’s Rs 5,655 crore Jio investment is credit positive: Moody’s

NEW DELHI: Moody’s Investors Service Monday said that Silver Lake, the US-based equity firm’s investment in Jio Platforms worth Rs 5,655.75 crore, is credit positive since the deal enhances parent Reliance Industries financial flexibility.

“This (Jio-Silver Lake deal) is credit positive as it enhances RIL’s already strong financial flexibility, including the recently announced rights issue ($7 billion) and investments by Facebook Inc,” New York-based Moody’s in a statement said and added that the initiatives that could reduce net debt by about $13.6 billion from the reported net debt of $21.4 billion as on 31 March 2020.

Monday, RIL and Jio said that the US private equity firm Silver Lake would invest Rs 5,655.75 crore in Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore.