Reliance Jio and Reliance Industries Ltd (RIL) have initiated discussions with the lenders for raising funds up to $2.5 billion (₹20,600 crores approx.) and $1.5 billion (₹12,400 crores approx.) respectively in the foreign loans.

RIL is in discussion with various vendors, including MUFG Bank, HSBC, Citigroup, Bank of America, and Barclays, to raise funds to support its capital expenditure plan, according to the report. Loans, most likely for approximately five years, are priced between 130-150 points above the SOFR (Secured Overnight Financing Rate).

The finalization of this entire process will soon take place as Reliance Jio is poised to buy 5G network gear from Ericsson and Nokia, valued at $2.5 billion. The 5G network services of Reliance Jio, which is currently active in the cities of Delhi, Varanasi, Kolkata, and Mumbai, will soon be covering many other locations across the country.

With the Reserve Bank of India (RBI) relaxing the norms governing ECB of up to $1.5 billion, RIL might not require prior regulatory approvals to avail of its foreign loans.