BofA to invest $1.9 billion for 49.9% stake in Jio Financial NBFC unit
Bank of America will acquire up to 49.9% stake in Jio Credit, a unit of Jio Financial Services, for as much as 182.68 billion rupees
Bank of America will acquire up to 49.9% stake in Jio Credit, a unit of Jio Financial Services, for as much as 182.68 billion rupees ($1.92 billion), the companies said on Wednesday.The U.S. lender will be a joint venture partner in Jio Financial's non-bank lending arm through a preferential allotment of equity shares and warrants.The transaction initially gives Bank of America a 26.5% stake, which can go up to 49.9% upon exercise of the warrants.The deal is the latest large investment in India's financial services sector, which include Japan's MUFG investment in Shriram Finance and Dubai-based bank Emirates NBD's 60% stake in lender RBL Bank."The investment will allow BofA to expand its participation in the rapidly growing Indian market.... while doing so with a partner that has local expertise," the companies said in a statement.
The BriefWire