Reliance Jio Infocomm, a telecommunications giant, has successfully secured a substantial offshore loan amounting to Rs 16,640 crore (equivalent to $2 billion) for the financial year 2023-24 (FY24). This noteworthy achievement, reported by The Economic Times (ET) on a recent Tuesday, marks one of India’s largest offshore loans in this fiscal year. The primary objective behind this financial maneuver is to facilitate the procurement of telecommunications equipment from the renowned Finnish corporation, Nokia. HSBC has played a pivotal role as the lead arranger for these loans.
The ET report further highlights that the Finnish credit agency, Finnvera, has extended insurance coverage for a similar amount to safeguard Nokia’s interests. This strategic insurance coverage is expected to yield cost-saving benefits for Jio’s ambitious 5G equipment procurement plans.
According to an individual privy to the matter, “The deal was recently finalized after several months of negotiations with HSBC serving as the lead arranger. The loan amount hovers around the $1.5-2 billion range and is structured to include an implied interest rate over the loan’s tenure.”
Notably, in September, Jio successfully secured nearly $2 billion from BNP Paribas, with the primary objective of financing the acquisition of cutting-edge 5G equipment from Ericsson.
In Jio’s annual report, they proudly announced a strategic collaboration with the Swedish credit agency, EKN, securing a substantial funding of $2.2 billion. These funds have been earmarked to fuel the acquisition of essential equipment and services for their ambitious 5G expansion.
In terms of market performance, data released by the Telecom Regulatory Authority of India (Trai) reveals that Jio demonstrated impressive growth by adding 3.9 million mobile users in July, significantly outpacing Airtel’s addition of 1.5 million users during the same period.
Jio’s robust growth is evident in its consistent rise in user numbers, adding 2.2 million users in June. Furthermore, the company achieved a remarkable milestone by surpassing the 10 million mark in landline connections in July, up from 9.95 million in the preceding month. At present, Jio stands as the service provider for one out of every three connections in India’s robust 30.6-million-strong landline market.
For the month of July, Jio’s subscriber market share dominated at 38.6 percent, while Airtel maintained a competitive share of 32.7 percent, illustrating Jio’s unwavering commitment to growth and excellence in the telecommunications sector.
About Reliance Jio:
Jio, officially known as Reliance Jio Infocomm Limited, is an Indian telecommunications corporation and a subsidiary of Jio Platforms. The company is headquartered in Navi Mumbai, Maharashtra, India, and boasts a comprehensive nationwide LTE network that spans all 22 telecom circles in the country.
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