Reliance Jio has entered into an agreement with Brookfield Infrastructure Partners and its affiliates for an investment of Rs 25,215 crore into Tower InvIT i.e. Reliance Jio Infratel Private Limited (RJIPL).
The transaction closure is subject to completion of due diligence, documentation and requisite statutory and regulatory approvals.
RJIL is the anchor tenant in RJIPL for all the towers with long term anchor contract for around 50% fiber pairs.
RJIPL will also raise long-term debt. Jio continues to build capacity in line with increasing data traffic which crossed the 10 Exabyte mark during the quarter. Jio remains to be the only network to deploy tri-band (800 MHz/1800 MHz/2300 MHz) 4G across all its network sites.
The proceeds from the investment by Brookfield and long-term loans will be used to repay existing financial liabilities of RJIPL, including loans extended by Reliance.
Brookfield is a leading global alternative asset manager and operators of infrastructure assets worth over $365 billion with operations in more than 30 countries.
Fiber and tower undertakings were transferred to Jio Digital Fibre Private Limited (JDFPL) and Reliance Jio Infratel Private Limited respectively, effective 31st March, 2019. JDFPL and RJIPL operate as independent entities with transfer of control to the SEBI registered Infrastructure Investment Trusts.