JIO Financial Services Ltd.

Jio Financial Services and Bank of America Corporation (BofA) have signed a definitive agreement whereby BofA will acquire up to a total of 49.9% interest as a joint venture partner in the company’s wholly-owned NBFC (non-bank financial company) lending subsidiary, Jio Credit (JCL). The investment of up to Rs 18,268 crore (around $1.9 billion) will be made through a preferential allotment of equity shares and warrants. The transaction initially gives BofA a 26.5% equity interest in JCL, which can go up to 49.9% upon exercise of the warrants.

The venture will combine the company’s digital reach and knowledge of the Indian market with BofA’s global financial services expertise. The investment will allow BofA to expand its participation in the rapidly growing Indian market, the world’s fastest growing major economy at double the global growth rate, while doing so with a partner that has local expertise and differentiated capabilities. 

As India’s financial sector expands alongside the nation’s robust economic growth, the partnership positions the venture to capitalize on emerging growth opportunities in the industry. Beyond securing long-term capital for sustainable loan growth, the collaboration provides the venture with access to BofA’s expertise related to financial services, governance, risk management, and technology.

Pursuant to the transaction, JCL’s Board of Directors will have equal representation from both the company and BofA. The existing management team of JCL will continue driving the strategy and operations at the NBFC and JCL will continue to be consolidated as a subsidiary in the company’s financial reporting.

Jio Financial Services (JFSL) operates its financial services business through its consumer facing subsidiaries namely Jio Finance (JFL), Jio Insurance Broking (JIBL) and Jio Payment Solutions (JPSL) and joint venture namely Jio Payments Bank (JPBL).