New Delhi: The telecom division of Mukesh Ambani’s Reliance Industries, Jio Infocomm, raised over $2 billion (Rs 16,640 crore) in one of the largest offshore loans in the nation in FY24. The deal that will assist in paying for the telco’s procurement of Nokia 5G equipment was arranged by HSBC as the principal arranger. According to reports, the Finnish credit export agency Finnvera gave a cover in the amount of the same amount to protect Jio’s 5G equipment provider, Nokia and the telecom company’s international lenders from potential hazards.

According to the Reports, with knowledge of the situation, this sum is also anticipated to lower Jio’s overall expenses associated with financing 5G equipment and to increase the comfort of the lender and supplier.

Nokia is insured for a comparable amount thanks to coverage from the Finnish credit agency Finnvera. This insurance will lower Jio’s financial expenses for 5G equipment.

Jio said in its annual report that it has also worked with the Swedish credit bureau EKN to raise $2.2 billion. The equipment and services for its 5G plan will be paid for using this money.

Following conversations over the past three months with HSBC as the principal arranger, the deal was recently finished. According to sources, a person with intimate knowledge of the case said that the loan size, which is estimated to be between $1.5-2 billion, is structured in a way that brings with it an indicated rate of interest throughout the life of the loan.

Jio also received close to $2 billion in funding from BNP Paribas earlier in September. The main purpose of these finances was to pay for the procurement of 5G equipment from Ericsson.

Mukesh Ambani, chairman of Reliance Industries, stated that Jio would be able to meet every 5G demand in the nation by December end during the company’s annual general meeting in August of this year. “We realise that every household, small and medium company, factory, school, and hospital in India would like to get 5G; therefore, here is our promise: With this enormous reach and capability. We will be able to rapidly meet each and every request for a Jio 5G internet connection across the nation starting in December of this year,” he stated.

Data from the Telecom Regulatory Authority of India (Trai) shows that Jio attracted 3.9 million new mobile customers in July, while Airtel only added 1.5 million.

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