Bank of America to invest Rs 18,268 cr for 49.9% stake in Jio Financial arm
Bank of America has agreed to invest up to Rs 18,268 crore in Jio Financial Services Ltd (JFSL), a subsidiary of Reliance Industries. In exchange for this investment, BofA will acquire a 49.9% stake in Jio Credit Limited (JCL), JFSL's lending arm, with the possibility of increasing to 100% upon exercising warrants. The transaction, valued at Rs 18,268 crore, will be completed through a preferential allotment of equity shares and warrants.
This partnership aims to enhance Bank of America's presence in India, a rapidly growing market with a double-digit global growth rate. By leveraging JFSL's local expertise and BofA's global financial services expertise, the collaboration seeks to expand access to credit for all Indians.
As part of the deal, JCL's Board of Directors will have equal representation from JFSL and BofA, with the existing management team of JCL continuing to steer strategy and operations. Reliance Industries Chairman Mukesh Ambani stated that this partnership will eliminate credit delivery friction for all Indians, while Bank of America's CEO Brian Moynihan expressed confidence in India's growth potential and enthusiasm to become a partner with Jio Financial Services.
Written by urgent.news from The Indian Express's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
