IO has reached out to several foreign banks to secure loans of up to $1.5 billion. These funds will be used for Jio’s capital expenditure needs and to repay some of its current debt.
Bank of America, Citigroup, HSBC, MUFG, Mizuho, and Credit Agricole are among the banks that have been approached. The loan is anticipated to be structured as a club deal, with each bank assuming a portion of the loan.
The loan is projected to have a pricing at a spread of approximately 100 basis points above Libor. While the duration of the loan is not yet determined, it is expected to fall within the 3-5 year range.
This loan demonstrates Jio’s robust financial position, bolstered by a healthy balance sheet and substantial cash reserves. It will enable Jio to continue investing in its network and expand its operations.
Here are some additional details from the article:
- The loan is expected to be closed in the next few months.
- Jio has been on a borrowing spree in recent months. In March, the company raised $5 billion in a syndicated loan from international banks.
- Jio’s capex requirements are expected to be high in the coming years. The company is planning to invest heavily in its network to improve its coverage and capacity.
- Jio’s debt-to-equity ratio is currently around 0.5. This is considered to be a healthy level of debt.
