Reliance backs Jio's 5G rollout with Rs 7,706 crore assurance to Samsung

Reliance Industries Ltd (RIL) has issued a letter of guarantee amounting to Rs 7,706 crore to Samsung India aiming to support credit extension for Reliance Jio Infocomm Ltd (RJIL), a subsidiary of RIL, in the procurement of telecommunications equipment. RIL made this announcement on Wednesday.

This funding arrangement for equipment procurement comes subsequent to Jio's successful $2.2 billion fundraising endeavour with the Swedish export credit agency EKN during FY23. The raised capital will be earmarked for financing the acquisition of necessary equipment and services crucial for Jio's nationwide deployment of 5G services. RIL conveyed this information in its annual report released last week.

“RJIL is in compliance with its obligations toward Samsung India and, accordingly, the guarantee does not have any adverse impact on RIL," the company said in a statement.

Jio holds a steadfast commitment to investing in the establishment of comprehensive 5G services across the country. The rollout of the 5G network commenced in October 2022. By March 31, 2023, Jio had already introduced its 5G services in more than 2,300 cities and towns. The ultimate objective is to achieve complete nationwide coverage by December.

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In the same annual report, RIL also stated that, in conjunction with its subsidiary Jio Infocomm, it had effectively secured a combined total of $3 billion via syndicated term loan facilities.

Furthermore, Jio had previously divulged a significant $2.1 billion agreement for procuring equipment from Ericsson, a prominent Swedish network equipment provider.

In 2022, Jio also publicised agreements with renowned global network equipment suppliers such as Nokia, Ericsson, Samsung, and Cisco, all aimed at the comprehensive implementation of their pan-India 5G network.

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