MUMBAI: Billionaire Mukesh Ambani-led Reliance Jio has tapped the yield-hungry Japanese loan market to help expand its telecom empire.The telecom company, owned by India’s richest man, raised $500 million through a syndicated Samurai loan from three Japanese banks, including Bank of Tokyo-Mitsubishi UFJ (MUFG), Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho Bank, two people familiar with the matter told ET. The floating-rate loan is for a seven-year period.An email sent to Reliance Industries (RIL), the parent company of Jio, remained unanswered until the publication of this report. The Japanese banks involved in the fund-raising could not be contacted immediately.Loaded with huge cash deposits and shrinking investment options in homeland projects, high-street Japanese banks are chasing bankable debt securities in high-growth overseas markets . The Jio loan has been priced after adding 65 basis points over the Japanese yen-LIBOR (London Interbank Offered Rate). The proceeds may be used for the telecom company’s expansion.Last month, RIL’s board approved raising Rs 20,000 crore through debt in tranches.

Source: Economic Times April 13, 2018 02:37 UTC