BofA to invest $1.9 billion for 49.9% stake in Jio Financial NBFC unit

• The investment of 182.68 billion rupees ($1.92 billion) will be made through a preferential allotment of equity, with the stake increasing from an initial 26.5% to up to 49.9% upon exercise of warrants
• This is part of a trend of major foreign investments in India's financial sector, following MUFG's investment in Shriram Finance and Emirates NBD's 60% stake in RBL Bank
• BofA stated the partnership will leverage Jio's local expertise to access India's rapidly growing market through the non-bank lending platform

BofA to Acquire Nearly 50% Stake in Jio Financial's Lending Unit for $1.92 Billion

Bank of America announced a major investment in India's financial services sector, acquiring up to 49.9% of Jio Credit, the non-banking lending arm of Jio Financial Services, for up to 182.68 billion rupees ($1.92 billion).

Key Transaction Details:

• Initial stake: 26.5% through preferential equity allotment
• Maximum stake: 49.9% upon exercise of warrants
• Total investment value: $1.92 billion (182.68 billion rupees)
• Structure: Joint venture partnership in the non-bank financial company (NBFC)

Strategic Rationale:

The partnership allows Bank of America to expand its presence in India's rapidly growing financial market while leveraging Jio Financial's local expertise. Jio Financial Services is part of the Reliance Group ecosystem, one of India's largest conglomerates.

Market Context:

This deal represents the latest in a series of significant foreign investments in India's financial services sector, following:

• MUFG's (Japan) investment in Shriram Finance
• Emirates NBD's (Dubai) 60% stake acquisition in RBL Bank

Market Implications:

The substantial investment signals strong foreign confidence in India's financial services growth trajectory, particularly in the non-banking lending segment. The deal reinforces India's position as an attractive destination for international financial institutions seeking emerging market exposure. For Bank of America, this represents a strategic entry into retail and commercial lending in one of the world's fastest-growing major economies, without requiring full regulatory approval as a standalone banking entity.

The transaction awaits regulatory approvals and is expected to close in the coming months.