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Ambani’s Reliance Jio raises $750m loan to fund telecom infra

NEW DELHI: Mukesh Ambani’s telecom arm Reliance Jio Infocomm Wednesday said it has raised a $750 million (nearly Rs 4,500 crore) loan to finance goods and services that it procures from Korea’s Samsung Electronics and Ace Technologies Corp.

The telecom arm of Reliance Industries Ltd is in the process of rolling out its infrastructure as it gears up to launch pan-India 4G telecom services over the coming months on the frequencies of 800 MHz, 1,800 MHz and 2,300 MHz.

The loan, raised on May 7, has been backed by Korea Trade Insurance Corporation (K-sure). “The loan is guaranteed by RIL and will be primarily used to finance goods and services procured from Samsung and Ace Technologies Corp, which are being sourced for the infrastructure rollout,” it said.

The loan has 12 years of repayment time.

This is the first facility by K-sure with Reliance Jio and its largest deal in India, but is the second facility by K-sure with the Reliance Group.

This marks the second round of financing for RJio from Korean export credit agencies (ECAs) and the third overall between the group and Korean ECAs in three years, highlighting growing business with Korean organizations, Reliance Jio said.

The facility is funded by nine relationship banks of Reliance, including The Hongkong and Shanghai Banking Corporation, Australia and New Zealand Banking Group, Banco Santander SA, The Bank of Tokyo-Mitsubishi UFJ, JPMorgan Chase NA, Mizuho Bank, and Sumitomo Mitsui Banking Corporation, ING Bank and DZ Bank AG.

Source: Times of India

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