Mukesh Ambani-led Reliance Jio will soon roll out a $1.5-billion (Rs.9,000 crore) debt issue abroad. The funds raised will be used to repay the company’s debt and launch telecom and data services. For this, Reliance Industries was appointing bankers. The loan would be marketed in the next few weeks, a source who did not wish to be named said.
As per reports, Reliance Jio could expect similar rates like Tata Steel which has borrowed abroad and its debt would be backed by India's most valuable company. Reliance Industries is aggressive in borrowing abroad for expansion and to pay off costly local loans.
An investment of Rs.33,000 crore has been done by Reliance Industries in the telecom sector. Moreover, the company has promised to start services next year by when the company would have pumped in Rs.70,000 crore.
With the entry of Reliance Industries, the Indian telecom sector is poised for more competition.
