Reliance Jio today secured a USD 1-billion worth of term loan from a slew of foreign banks led by ANZ Bank and HSBC and covered by the Korea Trade Insurance Corporation (K-Sure) to finance its procurements from Samsung and Ace Technologies.
Reliance Jio today secured a USD 1-billion worth of term loan from a slew of foreign banks led by ANZ Bank and HSBC and covered by the Korea Trade Insurance Corporation (K-Sure) to finance its procurements from Samsung and Ace Technologies.
The term loan, the fourth for the Reliance Industries in the past five years and the second covered facility for Jio in the past three years, was arranged on June 22, the company said in a statement.
"The term loan facility will be used to finance goods and services procured primarily from Samsung and Ace Technologies," Jio said.
The loan has door-to-door tenor of 10.75 years, and is the largest deal in the country as well as the largest deal supported by it in the telecom sector globally, it said.
The facility was arranged by Australia & New Zealand Banking Group, HSBC, BNP Paribas; Commerzbank, Citibank, ING Bank, JPMorgan Chase Bank, Mizuho Bank, MUFG Bank, and Banco Santander.
Earlier in April it was reported that Reliance Jio's decision to undertake price cuts in the January-March quarter led to a decline in its average revenue per user (ARPU) by 11% to Rs 137.1.
The company had reduced its base tariff plan for JioPhone users at Rs 49/month while JioPrime membership was extended by a year for free. However, the dip in ARPUs came along with a strong addition in the subscriber base during the quarter at 26.5 million.
The operating revenue grew 3.6% during the January-March quarter at Rs 7,128 crore, slower than 11.9% revenue growth recorded in the December quarter.
Several analysts had expected a decline in ARPU owing to recent tariff cuts undertaken, but see strong subscriber additions as a positive thing.
In an analyst note, Kotak Institutional Equities says RJio's fourth quarter earnings were weaker than our expectations on almost all fronts, including revenues and PAT while capex was way above expectations.
Revenues at 7.5% were below our estimated Rs 7,700 crore. "Disappointment on the revenue front was a combination of lower-than-expected net subscriber additions and lower-than-expected ARPU. We expected Jio to end FY2018 with 199.6 million subscribers but the company reported 186.6 million," it said.
(With inputs from PTI)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Reliance Jio takes $1 billion term loan to pay Korean vendors")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}