The Ambani led telco Reliance Jio (Jio) is looking to raise Rs 2,250 crore by issuing secured bonds on private placement basis, the company said in a regulatory filing. Jio will be issuing non-convertible debentures (NCDs) and money will likely aid the company in its 4G commercial rollout; Jio has not yet disclosed an exact date or timeframe for the launch.
In October last year, Jio raised Rs 3000 crore by issuing secured redeemable non-convertible debentures to aid its 4G roll out. In May 2015, the company had raised a $750 million loan (~Rs 4500 crore) from nine banks on a 10 year repayment period, to finance goods and services from Samsung and Ace Technologies. This included banks like HSBC, Bank of Tokyo-Mitsubishi, JPMorgan Chase Bank, Mizuho Bank and Sumitomo Mitsui Banking Corp among others.
On Monday, Jio said that around 500,000 employees have been onboarded onto its test network that it rolled out for employees only in December 2015.The company added that its employees have consumed over 18 GB of data in a month.
Jio’s commercial launch: Reliance Jio missed commercial operation launch in March this year. Anshuman Thakur, Reliance Jio’s head of strategy and planning, parried queries on the delay of the commercial launch. “As it needs a lot of optimisation, which will lead to some disturbances in services, we want to ensure that once commercially launched the service is seamless. In fact the only delay is network optimisation. Also, we want to have a larger user-base of say a couple of millions at least (up from the present 0.5 million) to do the rollout,” he was quoted in this PTI report.
Other updates from Jio
-Last week, the Department of Telecommunication approved a spectrum sharing deal between Reliance Jio and Anil Ambani owned Reliance Communications to share their 800MHz spectrum band across 9 Circles.
– This month, Reliance Jio said that it will use the newly launched Bay of Bengal Gateway’s (BBG) undersea cable landing facility in Chennai to offer high-speed broadband services in the country.
-Last month, Jio signed an Intra-Circle Roaming (ICR) deal with the Government-owned telco body BSNL. According to an ET report, the ICR deal will be applicable across 22 circles; BSNL will be charging 25 paise per minute for voice roaming, 25 paise per megabyte for data and 5 paise per SMS under the ICR deal.
Appointments at Reliance Jio