![Reliance Jio to raise $750Mn through offshore loan Reliance Jio to raise $750Mn through offshore loan](https://varindia.com/storage/news/uploads/2018/02/6239b4ad7ad31.jpg)
Reliance Jio is raising around Rs 5,700 crore through an offshore syndicated loan to primarily fund future capex needs.
Multiple banks, including the State Bank of India, Bank of America, Credit Agricole, HSBC, along with three Japanese banks – MUFG, SMBC, and Mizuho might be syndicating the five-year offshore loan.
Jio might use some proceeds from the fundraise for refinancing the short-term bridge loans, which were raised through commercial papers. Further, a part of the proceeds might also go towards the capex needs of 5G in urban cities.
A chunk of the proceeds of Jio’s latest fundraise could be used for capex spends toward the first wave of 5G network rollouts, particularly in the urban markets.
Bankers aware of the development said Jio’s latest fundraise via an offshore loan will also highlight global investor confidence in India’s telecom market leader, regardless of the troubled geopolitics in the aftermath of the Russian invasion of Ukraine.
In January, Jio raised about Rs 8,000 crore by selling corporate bonds in local money markets to primarily clear a portion of past dues relating to spectrum purchases in the 2014 and 2015 auctions.
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