Mumbai sources reported that Reliance Jio Infocomm’s fiber network unit is rising about Rs 27,000 crore in syndicated loans from a group of banks, three executives aware of the financing plans told ET, as the newly created infrastructure business expands to meet expected demand for its assets from sectors such as power besides telecom and internet services providers.
Jio, which had more than 300 million subscribers in March, has demerged its fiber and tower business into two units Jio Digital Fiber Pvt Ltd and Reliance Jio Infratel Pvt Ltd. Jio Digital Fiber would use the dedicated credit line. These loans, maturing in two years, would cost about 8.35-8.85% and the loan is primarily aimed at facilitating the demerger process through which the fiber business emerges as a standalone subsidiary,” said one of the persons cited above.
Proceeds would be used to strengthen the fiber business and draw users from other companies and businesses. “The loan will be used to strengthen the fiber unit,” said a senior industry analyst. “Other telecom players can use this fibre network…even those in the power industry can use these assets.”
