The investment will be executed through a preferential allotment of equity shares and warrants. Initially, Bank of America will secure a 26.5% equity interest in the non-bank financial company, with the option to increase its holding to 49.9% upon the exercise of warrants. Both parties have agreed to equal board representation, ensuring shared governance as the venture scales its operations across the Indian market.
In section Releases
Bank of America to Acquire 49.9% Stake in Jio Credit Limited
Bank of America has entered a definitive agreement to acquire up to 49.9% of Jio Credit Limited, a lending subsidiary of Jio Financial Services. The deal, valued at approximately $1.9 billion, aims to merge Jio’s extensive digital reach in India with the American banking giant’s global risk management and financial expertise.
Jio Credit Limited has achieved rapid growth since its inception two years ago, reaching 30,667 crore rupees in assets under management. By integrating Bank of America’s institutional pedigree, the partnership seeks to accelerate the delivery of retail and commercial credit products. Mukesh D. Ambani noted that the collaboration is designed to enhance financial inclusivity, while Bank of America CEO Brian Moynihan emphasized the move as a strategic commitment to one of the world’s fastest-growing economies. The transaction remains subject to customary regulatory and statutory approvals.
Comments (0)
No comments yet. Be the first!