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Reliance Industries Ltd. (RIL) has issued a letter of guarantee of ₹7,706 crore to Samsung India Electronics. The guarantee is in favor of Samsung for extending credit to its subsidiary, Reliance Jio, for the supply of telecom equipment. RIL has stated that the guarantee is valid until all obligations are fulfilled by Reliance Jio Infocomm Ltd. RIL assures that Reliance Jio is in compliance with all its obligations towards Samsung India Electronics and that the guarantee does not have any adverse impact on the company.

This guarantee comes after Reliance Jio secured .2 billion in funding from the Swedish Export Credit Agency (EKN) in the financial year ended March 2023. The funds will be used to finance the equipment and services for Jio’s pan-India 5G rollout. According to Reliance Industries’ annual report, the transaction was oversubscribed in the primary syndication market by global lenders from various geographic regions.

Reliance Jio has committed to investing ₹2 trillion for providing pan-India 5G services. The company began network rollouts in October of the previous year and as of March 2023, had launched its 5G services in over 2,300 cities and towns. The goal is to achieve nationwide coverage by December of this year.

In addition to the guarantee provided to Samsung, Reliance Industries disclosed in its annual report that the company, along with its subsidiary Jio Infocomm, has secured billion equivalent through syndicated term loan facilities. Previously, Jio had announced an equipment purchase worth .1 billion from Swedish network equipment provider Ericsson. Jio has also signed agreements with other global network equipment providers such as Nokia, Ericsson, Samsung, and Cisco for the deployment of its 5G network across India.

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