Funding
Bank of America to Acquire 49.9% Stake in Jio Credit for $1.9 Billion
Bank of America is set to acquire a stake in Jio Credit Limited, a non-banking financial company under Mukesh Ambani's Jio Financial Services, in a deal valued at around $1.9 billion. The transaction will begin with BofA purchasing a 26.5% stake, with the option to increase this to 49.9% through warrant exercises, contingent on regulatory approvals.
The partnership aims to leverage BofA's institutional lending expertise in India's growing consumer lending market. Jio Credit Limited, which focuses on consumer and merchant lending products, had assets under management of approximately 10,094 crore rupees as of March 31, 2025. The deal structure includes equal board representation from both BofA and Jio Financial Services, emphasizing a partnership rather than a traditional acquisition.
Before the announcement, Jio Financial Services injected around 2,000 crore rupees into Jio Credit to bolster its operations. This strategic move highlights BofA's confidence in the future growth potential of Jio Credit, as the valuation suggests a premium based on anticipated expansion rather than current performance.
FAQ
What is the value of the deal between Bank of America and Jio Credit?
The deal is valued at around $1.9 billion.
What percentage of Jio Credit will Bank of America initially acquire?
Bank of America will initially acquire a 26.5% stake in Jio Credit.
What is the maximum stake Bank of America can acquire in Jio Credit?
Bank of America has the option to increase its stake to 49.9% through warrant exercises.
What is the focus of Jio Credit Limited?
Jio Credit Limited focuses on consumer and merchant lending products.
How much did Jio Financial Services inject into Jio Credit before the announcement?
Jio Financial Services injected around 2,000 crore rupees into Jio Credit to bolster its operations.