India Reliance to borrow US$2.5 billion to refinance debt

1 min readUpdated Jun 4, 2025Jul 20, 20188:20 AM

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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.

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What this means

Reliance's strategic debt refinancing is a shrewd move, reducing finance costs and solidifying its expansion in the fiercely competitive Indian telecom and retail sectors. By securing funds at potentially lower rates, Reliance can more aggressively fund its extensive Jio GigaFiber rollout, putting considerable pressure on Bharti Airtel, which is also seeking to raise funds for its 4G network. This manoeuvre is consistent with Reliance's bold market entries, such as Skims' launch in India, showing an appetite for significant investment to dominate. The risk lies in execution speed and market saturation, but with a clear financial advantage, Reliance is well-positioned. The next crucial indicator will be the specific cities announced for the Jio GigaFiber broadband service expansion.

Maria Santos

Questions & Answers

Why is Reliance seeking to borrow US$2.5 billion?

Reliance is borrowing to refinance existing offshore debt, which was raised around two and a half years ago. This move is expected to either lower average borrowing costs or extend the maturity periods of their current loans.

What are Reliance's immediate plans for the funds?

The borrowed funds will support Reliance's ongoing projects, including the rollout of its optical-fiber network. It will also help finance the establishment of more retail stores as part of its business expansion strategy.

What is Reliance's broad strategy for its Jio GigaFiber service?

Reliance has ambitious plans to expand its fixed-line broadband service, Jio GigaFiber, across India. The conglomerate intends to roll out this service in 1,100 cities throughout the country.

How is Reliance's competitor, Bharti Airtel, responding to market conditions?

Bharti Airtel is looking to raise $1 billion from overseas markets to refinance its high-cost debt. This funding is also intended to expand its 4G mobile-phone technology network, in response to competition from Reliance Jio.

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