Reliance Jio secures $2 billion offshore loan for 5G gear expansion

  • Investing.com
  • Stock Market News
Reliance Jio secures $2 billion offshore loan for 5G gear expansion
Credit: © Reuters.

Reliance (NS: RELI ) Jio Infocomm, the leading telecom operator in India, has secured nearly $2 billion through an offshore loan arranged by HSBC in the fiscal year 2024. The loan is intended to fund the purchase of 5G equipment from Nokia (NYSE: NOK ). Concurrently, Finnvera, a Finnish export credit agency, offered similar protection to Nokia and Jio's global lenders.

This move echoes a previous transaction where Jio secured a loan via BNP Paribas (OTC: BNPQY ) for Ericsson (BS: ERICAs )'s 5G gear, with EKN providing a $2.2-billion cover. Both deals included an implied interest rate for their respective terms.

In the midst of these financial maneuvers, Jio has been broadening its 5G coverage. The company recently launched Jio AirFiber and maintains exclusive control over 5G airwaves in the 700 MHz band.

Analysts like those at Jefferies predict substantial revenue opportunities for Jio by March 2026. However, they also caution that additional rupee depreciation could escalate Jio's foreign debt repayment burden. This is particularly relevant as the company is currently seeking a $4 billion offshore loan to facilitate a nationwide 5G rollout with Nokia and Ericsson's gear.

HSBC, Finnvera, Jio, and Nokia have refrained from commenting on these developments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search

Related Articles