Bank of America pledges $250B toward US infrastructure update
BofA will lend, bank, invest in and advise on projects such as data centers, power generation and transportation.
Bank of America announced plans to invest up to Rs 18,268 crore ($1.9 billion) in Jio Financial Services' lending subsidiary Jio Credit, aiming to acquire a majority stake. The proposed transaction values Jio Credit at approximately $3.8 billion, nearly double its current net worth. Bank of America initially plans to acquire a 26.5% stake through a preferential share allotment, with the potential to increase to 49.9% upon the exercise of warrants.
The investment will enable Jio Credit to expand its loan book, introduce new products, and enhance its risk management and technological capabilities. Following the investment, Jio Credit's board will have an equal representation of both Jio Financial Services and Bank of America, while the existing management will continue to run the subsidiary.
Reliance Industries chairman Mukesh Ambani emphasized the strategic partnership's significance, aiming to streamline credit delivery across India. Bank of America's CEO Brian Moynihan highlighted the company's confidence in India's growth potential, noting the combination of Jio Financial Services' local expertise and Bank of America's global reach.
Jio Financial Services, launched by Reliance Industries, offers a range of financial services, including secured retail loans and leasing solutions, and has recently expanded its asset management portfolio.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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