Jio to raise huge investment for 5G rollout

A quick 5G rollout is being prepared for by Reliance Jio. To support the 5G CAPEX, the telco is attempting to obtain money through debt. Reliance Jio is reportedly attempting to raise roughly USD $2.5 billion to buy 5G network equipment from Nokia and Ericsson. According to a recent report, Jio is reportedly trying to raise an additional USD $1.5 billion to pay for the 5G investment. With the launch of 5G, it was undoubtedly anticipated that the telecom sector’s debt levels would increase. This is especially true for Jio, as the telco is implementing 5G SA (standalone), which is totally separate from its 4G network. Nokia and Ericsson have already received long-term contracts with Jio. None of the businesses has mentioned how many Jio circles each vendor will be working on.

Jio is in discussions with many banks to raise money through debt.

Jio is partnering with numerous institutions, including Bank of America, BNP Paribas, HSBC, MUFG Bank, DBS Bank, Agricole, Societe Generale, and others. Jio intends to benefit from the RBI’s (Reserve Bank of India) decision to quadruple the automated route limit for businesses to obtain capital to $1.5 billion.

By November 2022, Jio hopes to have raised all necessary funds. Jio is hoping to raise close to $4 billion in total. The entire sum will be used for 5G equipment and expenditure. Denser infrastructure and a higher degree of fiberization for the backhaul would be needed for 5G. Given its standing in the market and the free cash flows it produces, Jio should be able to comfortably raise all the monies.

Regarding this, Reliance Industries has not made any public statements. On Tuesday morning, Reliance Industries’ stock is trading at Rs 2455, up 1.92% from the previous trading session.