Jio Financial Services Limited (JFSL) and Bank of America Corporation (BofA) have entered into a definitive agreement for BofA to acquire up to a 49.9 percent stake in JFSL's non-bank financial company subsidiary, Jio Credit Limited (JCL).
The acquisition will be executed through a preferential allotment of equity shares and warrants, with an investment totaling up to ₹18,268 crore, approximately $1.9 billion USD.
Initially, Bank of America will secure a 26.5 percent equity interest in JCL, which can increase to 49.9 percent upon the exercise of warrants.
The collaboration aims to leverage JFSL's digital reach and understanding of the Indian market alongside BofA's global financial services expertise to enhance digital access, innovation, and credit availability.
JCL's Board of Directors will feature equal representation from both JFSL and BofA, while the current management team will continue to lead the company's strategy and operations.
JCL will remain a consolidated subsidiary in JFSL's financial reporting.
Brian Moynihan, Chair and Chief Executive Officer, Bank of America said: "India is one of the world's most important growth markets, and this investment reflects our confidence in its future, a market we know well and have supported for decades. We are excited to become a partner with Jio Financial Services, which has achieved remarkable scale in a short period of time, growing to more than $3 billion in assets under management in just two years."