Reliance Issues INR 7,706 Cr Guarantee To Samsung For 5G Equipment Supply To Jio

Reliance Industries Ltd (RIL) has issued a guarantee of INR 7,706 Cr to Samsung for the latter extending credit to its subsidiary Reliance Jio for supply of 5G equipment.

“Guarantee issued for Reliance Jio Infocomm Limited (RJIL), a subsidiary of the company – Letter of Guarantee executed by the company in favour of Samsung India Electronics Private Limited (SIEPL) in consideration of SIEPL extending credit for supply of LTE equipment or part thereof to RJIL,” RIL said in an exchange filing.

The guarantee issued by the company is a continuing guarantee until all obligations are fulfilled by RJIL, it added.

As per RIL’s annual report, Jio provided 5G services in over 2,300 cities and towns in the country as of March 31, 2023. The telecom operator aims to complete the pan-India rollout of 5G services by the end of 2023.

As per the annual report, Jio has also secured a $2.2 Bn support facility from Swedish Export Credit Agency (SKEN) to finance its 5G rollout in India. 

Earlier, it was reported that the telecom giant was in talks with some major global banks to raise $1 Bn – $1.5 Bn through offshore syndicated loans to buy 5G network gear from Sweden’s Ericsson.

As part of its 5G plans, Jio also announced acquisition of US-based telecom equipment manufacturer Mimosa Networks for $60 Mn in a debt free, cash free deal in March. 

Jio held 38.17% share in the Indian wireless market in May 2023, followed by Bharti Airtel (32.57%) and Vodafone Idea (20.20%). 

Jio’s total subscriber base rose 6.8% to 448.5 Mn at the end of June 2023 from 419.9 Mn a year ago. Its consolidated net profit rose 12.5% year-on-year to INR 5,098 Cr in the first quarter (Q1) of the financial year 2023-24 (FY24).