Bank of America investing ₹18,268cr for 49.9% of Jio Credit
Big news in finance: Bank of America is teaming up with Jio Financial Services to grab up to a 49.9% stake in Jio Credit, Jio Financial Services's digital lending arm.
If the deal goes all the way, that's a massive ₹18,268 crore investment, giving both companies a strong foothold in India's booming credit market.
Jio Credit manages ₹30,667cr assets
Bank of America starts off with a 26.5% stake and can boost it later through the exercise of warrants, subject to regulatory and statutory approvals.
Jio Credit, just two years old and already managing ₹30,667 crore in assets, offers a range of lending products and plans to grow even bigger across India.
The partnership could provide additional capital to support loan growth and access to expertise in financial services, technology, risk management and governance, and it strengthens Bank of America's presence in India.