Bank of America invests around Rs 18,268 crore for 49.9% stake in Jio Credit
Mumbai: Bank of America will invest up to Rs 18,268 crore, or about $1.9 billion, to acquire as much as 49.9% of Jio Financial Servicesâ
Mumbai: Bank of America will invest up to Rs 18,268 crore, or about $1.9 billion, to acquire as much as 49.9% of Jio Financial Servicesâ lending subsidiary Jio Credit, marking one of the largest foreign investments in an Indian non-bank lender.The proposed transaction values Jio Credit at around $3.8 billion, equivalent to about 2.5 times its net worth. It will provide the digital lender with fresh capital to expand its loan book, introduce new products and strengthen its risk-management and technology capabilities.Bank of America will initially acquire a 26.5% equity stake through a preferential allotment of shares.
Its holding can rise to 49.9% upon the subscription and exercise of warrants, Jio Financial Services and the US lender said in a joint statement Wednesday. The transaction is subject to regulatory and statutory approvals.Following the investment, Jio Creditâs board will have equal representation from Jio Financial Services and Bank of America. The existing management will continue to run the lender, which will remain a subsidiary of Jio Financial Services.Jio Credit, which began operations less than two years ago, had built assets under management of Rs 30,667 crore as of June 30, 2026. The digital-first NBFC offers secured retail loans, including mortgages and loans against securities, as well as commercial and supply-chain financing.The joint venture will combine Jio Financial Servicesâ digital distribution network, customer reach and knowledge of the Indian market with Bank of Americaâs expertise in financial services, governance, technology and risk management.âOur strategic partnership with Bank of America is a pivotal milestone in this mission,â Reliance Industries chairman Mukesh Ambani said in a press statement.
âBy combining our digital reach with Bank of Americaâs global pedigree, we will eliminate friction in credit delivery for all Indians.âBank of America chairman and chief executive Brian Moynihan said the investment reflected the lenderâs confidence in India, which it considers one of the worldâs most important growth markets.âBy combining Jio Financial Servicesâ scale, local expertise and customer base with Bank of Americaâs global reach, digital experience and close to 250 years of leadership in banking, we can help expand access to financial services and support Indiaâs continued economic growth,â Moynihan said.Jio Financial Services operates lending, payments, insurance broking and leasing businesses.
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