RJIL raises $500 million through Samurai loans from Japanese banks

Reliance Jio Infocomm Limited (RJIL) has raised $500 million through a syndicated Samurai loan from three Japanese banks – the Bank of Tokyo Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation and Mizuho Bank. The floating rate loan is for a seven-year period. RJIL is seeking to diversify its borrowing base. According to the company, entering a new market for borrowing also helps it get business in the long run. As per analysts, the funds could be used to finance RJIL’s capital expenditure requirements, including paying for the wireless assets of Reliance Communications. Earlier, Reliance Industries Limited’s board had approved raising Rs 200 billion through debt in tranches. RJIL’s capex needs include about Rs 250 billion to be paid to RCOM for wireless assets, including spectrum, towers, optic fibre and switching nodes.