BofA to invest $1.9 billion for 49.9% stake in Jio Financial NBFC unit

Bank of America is investing $1.92 billion to acquire a 49.9% stake in Jio Credit, the non-bank lending arm of Jio Financial Services. The U.S. lender aims to expand its footprint in India's rapidly growing financial sector, where credit demand is high and loan delinquency rates are low. This deal follows a trend of large foreign investments in Indian banks and non-bank lenders, including recent transactions with Shriram Finance, Emirates NBD, and Yes Bank.

Through a preferential allotment of equity shares and warrants, Bank of America will initially hold a 26.5% stake, with potential growth to 49.9% upon exercise of the warrants. Jio Credit, valued at approximately $3.8 billion, will raise up to $6.6 billion in new equity and warrants to fuel its expansion. The investment will provide Jio Credit with additional capital and benefit from Bank of America's global reach, digital expertise, and extensive banking experience.