MUKESH AMBANI-owned Reliance Jio is in talks to raise about £1.3 billion to purchase equipment from Nokia, Bloomberg reported.
Banks involved in the discussions include Citigroup, JPMorgan Chase and Co and HSBC Holdings, people familiar with the matter said.
According to sources, the loan is expected to have a maturity period of up to 15 years and will be priced based on the Secured Overnight Financing Rate (SOFR)
The SOFR is a broad indicator of the cost of overnight cash borrowing secured by treasury securities.
The Bloomberg report further said that the lineup of banks and the terms may still change as the deal has not been finalised.
According to reports, Finland's export credit agency, Finnvera, will provide guarantees for the majority of the loan. Last October, Nokia announced a deal to supply Jio with equipment for their 5G deployment in India.
Reliance Industries was the first to launch 5G in India after investing a significant amount in acquiring the necessary airwaves.
JPMorgan, Citibank, and HSBC declined to provide comments. When contacted by Bloomberg regarding the loan discussions, representatives from Nokia and Finnvera also declined to comment. Reliance Industries also chose not to comment.
The Reliance Jio Phone 5G is expected to launch later this year. Last week, first images of Jio Phone 5G were leaked online.
