The transaction initially gives Bank of America a 26.5% equity interest in JCL, which can go up to 49.9% upon exercise of warrants. If fully subscribed, the bank’s investment, including equity shares and warrants, would be the equivalent of about $1.9 billion, according to the release.
The transaction is subject to regulatory and statutory approvals, the release said.
JCL, which was formerly known as Jio Finance Limited, is a digital-first lender offering a diverse suite of lending products within India. Its offerings include retail assets such as mortgages and loans against securities as well as commercial and supply chain finance. The business has been operating for two years and, as of June 30, has the equivalent of $3.2 billion in assets under management, according to the release.
The new venture will combine Jio Financial Services Limited’s digital reach and knowledge of the Indian market with Bank of America’s global financial services expertise, with the aim of delivering digital access, innovation and access to credit, the release said.
It will also enable Bank of America to expand its participation in the Indian market at a time when the country’s economy is growing at double the global growth rate, per the release.
Bank of America Chair and CEO Brian Moynihan said in the release: “By combining Jio Financial Services’ scale, local expertise and customer base with Bank of America’s global reach, digital experience and close to 250 years of leadership in banking, we can help expand access to financial services and support India’s continued economic growth.”
In an earlier move, it was reported in April 2024 that Jio Financial Services Limited launched a joint venture with BlackRock to establish a wealth management and brokering business in India. That collaboration was announced less than a year after the two companies began an asset management venture in which they each invested $150 million, the report said.