Bank of America to Invest Up to Rs 18,000 Crore in Jio Credit
US banking major will acquire up to a 49.9 per cent stake in Jio Financial Services' lending arm as both companies seek to expand financial services in India.
NEW DELHI, Aug 13: Bank of America will invest up to Rs 18,000 crore in Jio Credit, the non-banking financial company arm of Jio Financial Services, under a strategic partnership aimed at expanding financial services in India.
Under the agreement announced on August 12, Bank of America will initially acquire a 26.5 per cent stake in Jio Credit for around Rs 9,700 crore. Its holding could subsequently rise to 49.9 per cent through the exercise of warrants.
The transaction values Jio Credit at approximately $3.8 billion and represents one of the major recent foreign investments in India’s financial services sector.
Jio Credit has expanded rapidly since beginning operations and has built assets under management of more than $3 billion within two years, highlighting the growing demand for retail and other forms of credit in the Indian market.
The partnership will combine Bank of America’s international banking capabilities with Jio Financial Services’ domestic reach and digital infrastructure. The companies aim to widen access to credit and develop financial products for India’s expanding consumer and business segments.
The deal also adds to a broader trend of global financial institutions increasing their presence in India’s rapidly developing financial services market.
Jio Financial Services has previously entered strategic partnerships with international firms, including BlackRock and Allianz, as it builds businesses across lending, asset management and insurance.
The proposed investment is subject to applicable regulatory approvals.
