India Reliance to borrow US$2.5 billion to refinance debt

Owned by India’s richest man Mukesh Ambani, Reliance is negotiating with more than a dozen banks to arrange the loans in single or multiple tranches as it rolls out an optical-fiber network and sets up more retail stores.

This loans are to refinance existing offshore debt raised about two and a half years ago and would reduce average borrowing costs or extend maturities, the daily added.

The conglomerate, whose interests range from petroleum to retail stores, has an ambitious plan to roll out its fixed-line broadband service Jio GigaFiber for 1,100 cities of India.

Meanwhile India’s leading telecom service provider and Reliance rival Bharti Airtel is also looking to raise $1 billion overseas to refinance its high-cost debt.

It wants to expand its fourth-generation (4G) mobile-phone technology network in order to face stiff competition posed by Reliance Jio.