Bank of America will buy up to 49.9% of Jio Financial Services’ non-bank lending arm in a Rs182.68 billion ($1.92 billion) deal, expanding its footprint in India’s rapidly growing financial industry. Recent transactions include Japan’s MUFG investment in Shriram Finance, Dubai-based Emirates NBD’s 60% stake purchase of RBL Bank, and Sumitomo Mitsui Financial Group’s investment in Yes Bank.
Bank of America will form a joint venture with non-banking finance startup Jio Credit thru a preferential distribution of equity shares and warrants, the companies announced on Wednesday. According to Reuters, the acquisition values Jio Credit at roughly $3.8 billion, with BofA initially having a 26.5% interest, which may rise to 49.9% when the warrants are exercised.
Jio Credit would issue shares worth up to 66.13 billion rupees and warrants for up to 116.55 billion rupees to BofA as part of the transaction. By combining Jio Financial Services’ scale, local expertise, and customer base with Bank of America’s global reach, digital experience, and nearly 250 years of banking leadership, we can help expand access to financial services and support India’s ongoing economic growth,” said BofA CEO Brian Moynihan.
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