Reliance Jio Infocomm's fibre network unit will be reportedly raising around Rs 27,000 crore as loan from a group of banks in order to meet expected demand for its assets, a media report said.
ICICI Bank, Axis Bank, State Bank of India and Punjab National Bank are part of the consortium of lenders, according to The Economic Times.
On 2 April, Reliance Jio transferred control of its fibre and mobile tower units to two infrastructure investment trusts set up by Reliance Industrial Investments and Holdings Ltd (RIIHL).
The optical fibre cable infrastructure unit, Jio Digital Fibre Private Ltd (JDFPL) allocated shares worth Rs 500 crore to Reliance Jio Infocomm Ltd (RJIL). Also, mobile tower unit Reliance Jio Infratel Private Ltd (RJIPL) has allocated shares worth Rs 200 crore to RJIL.
"The loan is primarily aimed at facilitating the demerger process through which the fibre business emerges as a standalone subsidiary," a source aware of the development was quoted as saying by the newspaper.
Reliance Jio has crossed the 300 million customers mark in two-and-a-half years of its operations, sources said. The milestone was reached on 2 March, they added.
However, in its television commercials during the ongoing IPL season, Jio is shown 'Celebrating 300 million users'.
Jio became the fastest company in the world to achieve 100 million telecom subscribers in 170 days of starting commercial operation. In its earnings report for the quarter ended December 2018, Bharti Airtel had disclosed that it had 284 million customers.
With PTI inputs