Jio in Talks To Secure USD 2 Billion Funding via Offshore Loans To Fuel 5G Expansion By CIOTechOutlook Team

Jio in Talks To Secure USD 2 Billion Funding via Offshore Loans To Fuel 5G Expansion

CIOTechOutlook Team | Tuesday, 05 September 2023, 06:19 IST

Jio, Reliance Industries Ltd's telecommunications company, is in talks to raise $2 billion in offshore loans for the construction of its 5G network in India. As the loan arranger, BNP Paribas is expected to take the lead. The funding would be used to purchase 5G equipment from Swedish telecommunications giant Ericsson.

The planned loan, which is projected to be worth $1.9 billion to $2 billion, will be disbursed over a nine-month period. Jio will repay Ericsson, BNP Paribas, and several other banks engaged in the transaction over this time frame. This follows Jio's recent partnership with Exportkreditnämnden (EKN) to acquire a $2.2 billion loan. The major goal of this funding is to finance the acquisition of critical equipment and services for Jio's ambitious 5G development plans in India.

Jio's strategic decision to seek overseas loans demonstrates the telecom giant's commitment to improving its 5G infrastructure and increasing its network capabilities in the Indian market. With 5G technology on the horizon, this investment will be critical in improving connectivity and digital services across the country. Reliance Jio has also announced the availability of JioAirFiber services. JioAirFiber intends to give 150,000 connections per day to people across the country, redefining broadband connectivity in India.

Ambani's declaration reflects Jio's plans to continue extend its network, with the goal of serving more than 200 million consumers. Jio's new endeavor is poised to capitalize on the untapped potential of the Indian home segment, with an established customer base of about 10 million JioFiber consumers and a network infrastructure covering an incredible 1.5 million kilometers.