Reliance, Jio raise $5 billion

Reliance Industries Ltd and its telecom arm Jio Infocomm have raised a total of $5 billion in back-to-back foreign currency loans, the largest syndicated loan in India's corporate history, sources said.

Reliance last week raised $3 billion from 55 banks and Reliance Jio Infocomm secured additional credit of $2 billion from 18 banks, sources aware of the development said.

The $3 billion financing closed on March 31 and the add-on facility of $2 billion was secured on Tuesday, they said.

Reliance will mainly deploy the funds raised towards its capital expenditure, while Jio would put the money to finance its nationwide 5G network rollout.

The $2 billion add-on will be split equally between Reliance and Jio and is likely to be wrapped up by the end of April, they said. The primary syndication of $3 billion involved around 55 lenders, including nearly two dozen Taiwanese banks as well as global giants such as Bank of America, HSBC, MUFG, Citi, SMBC, Mizuho, and Credit Agricole.

The new loan of $2 billion has the same terms as the borrowing signed on March 31 with 55 lenders, including 40 that joined in two phases of syndication. The sources said the blowout response was not surprising considering the momentum the $3 billion borrowings had already generated in the senior phase by mid-January when it was launched into general syndication. The oil-to-telecom conglomerate is one of the most sought-after credits from India and enjoys deep banking relationships.

"This was visible from the remarkable response to the $3 billion loan, but also from the reception the $2 billion add-on has already received," a senior banker said.

Eighteen banks, including the 15 senior MLABs of the $3 billion loan and others joining in the senior phase, are expected to form the syndicate for the $2 billion add-on, which is split equally for Reliance and Jio, and is likely to be wrapped up by the end of the month.