Bank of America to Acquire Up to 49.9% Stake in Jio Financial Services’ Lending Arm
Bank of America has agreed to invest up to ₹182.68 billion, or approximately $1.9 billion, in Jio Credit, forming a joint venture with Jio Financial Services as foreign investment in India’s financial sector accelerates.
The transaction will initially give Bank of America a 26.5% equity interest in Jio Credit through a preferential share allotment. Exercising warrants would increase its ownership to 49.9%.
The investment values Jio Credit at approximately $3.8 billion. Completion remains subject to regulatory and statutory approvals.
Jio Credit is the digital lending subsidiary of Jio Financial Services. The non-bank financial company accumulated ₹306.67 billion, or about $3.2 billion, in assets under management during its first two years of operation. That was up 163% from ₹116.65 billion a year earlier, according to company data.
Its secured lending products include mortgages, loans against securities, commercial financing and supply-chain finance.
The partnership will combine Jio Financial’s digital distribution and knowledge of the Indian market with Bank of America’s capital, technology and experience in governance and risk management.
“India is one of the world’s most important growth markets, and this investment reflects our confidence in its future,” Bank of America Chairman and CEO Brian Moynihan said.
Jio Credit’s board will have equal representation from both partners, while its current management team will retain responsibility for strategy and operations. Jio Financial will continue consolidating the lender as a subsidiary in its financial statements.
The deal follows Jio Financial’s establishment of international partnerships with BlackRock in asset management and Allianz in insurance, extending the company’s strategy of combining local distribution with global financial expertise.
