Jio’s fiber business raising Rs 27000 crore loan – MUMBAI: Reliance Jio Infocom’s Fiber Network unit is collecting about 27,000 crores in syndicated loans from a group of banks, three officials told about funding schemes, which are expected of their assets for areas like newly built infrastructure. Expands to meet the demand. In addition to telecommunication and internet service providers, in the form of electricity. The lenders at the Consortium include ICICI Bank NSE 0.22%, Axis Bank NSE -0.03%, State Bank of India (SBI NSE 0.56%) and Punjab National Bank, industry officials worked related to fundraising.
Jio’s fiber business raising Rs 27000 crore loan: Reliance Group
Jio, who had more than 300 million subscribers in March, has divided his fiber and tower business into two units – Jio Digital Fiber Pvt Ltd and Reliance Jio Infratel Pvt Ltd. Jio Digital Fiber will use a dedicated credit line. The cost of these loans, which mature in two years, will be around 8.35-8.85%.
“The loan is primarily aimed at facilitating the demerger process, through which the fiber business emerges as a standalone assistant,” said one of the persons given above. Action will be used to strengthen the fiber business and attract users of other companies and businesses. A senior industry analyst said, “The loan will be used to strengthen the fiber unit.” “Other telecom players can use this fiber network … even people in the power industry can use these assets.”
It is said that the SBI has Rs 10,000-11,000 crore ICICI Bank and Punjab National Bank have offered Rs 5,000 crore. Axis Bank has Rs 6,000 crore.
These loans will also burn credit development profiles for the banking industry, which is trying to extract billions of dollars trapped in bad assets. Jio’s fiber business raising Rs 27000 crore loan, Reliance Group did not give the answer to question till the press. Axis Bank refused to comment. The mails of SBI, ICICI Bank and Punjab National Bank were also unanswered. For the latest updates, you can visit www.indiatimelines.com.
Overall bank loan increased by 13.24% to Rs 97.67 lakh crore during the year till March 29. Credit growth was 9.85% in FY18.
About a month ago, the National Company Law Tribunal (NCLT) allowed Jio to lock its fiber and tower businesses into two separate units, which would make the telco monetization.
Bharti Airtel and Vodafone Idea have also separated or are in the process of separating their fiber assets.
Rating company CRISIL said in a note in February, “Looking at increasing data consumption and increasing smartphone penetration, it provides the significant competitive advantage to RJIL (Reliance Jio Infocomm).” “The group has recently acquired the stake in the content companies and has invested in Fiberto-in-Home (FTTH), for which it has also acquired DEN Networks Limited and Hathway Cables and Datacom Limited. There is a possibility of additional cash flow streams available to them. group. “