PIF, ADIA May Invest US$1B In RIL’s Fibre InvIT

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Saudi Arabia’s Public Investment Fund (PIF) and Abu Dhabi Investment Authority (ADIA) are likely to invest about US$500 million (Rs 3,700 crore) Certificate of participation will be awarded on successful completion of the course each to acquire a total 51 per cent in the infrastructure investment trust (InvIT) structure formed by Reliance Industries Ltd (RIL) to monetise its fibre optic network assets, said people aware of the matter.

Over 48 per cent of the InvIT—Digital Fibre Infrastructure Trust (DFIT) —will be owned by various RIL entities, with the rest being held by high net worth individuals (HNIs), they said.

“ADIA and PIF are likely to bring US$500 million each to take 51 per cent of DFIT,” one of the persons aware of the development told ET.

Cannot confirm or deny: RIL

The agreements are likely to be signed in the next few weeks.

“As a policy, we do not comment on media speculation and rumours and we cannot confirm or deny any transaction which may or may not be in the works,” RIL said in an email. “Our company evaluates various opportunities on an ongoing basis.”

An ADIA spokesman declined to comment, while PIF did not respond to queries. ET had reported earlier this year that both PIF and ADIA are in talks with RIL for investing in the fibre assets.

Overall, RIL plans to raise Rs 39,700 crore by monetising its fibre optic network assets housed in Jio Digital Fibre Private Ltd., which is 51 per cent owned by DFIT and 48.44 per cent by RIL, with the rest held by minority shareholders, according to documents filed with the Securities and Exchange Board of India (Sebi). DFIT plans to raise Rs 14,700 crore by issuing 1.47 billion units, priced at Rs 100 apiece to investors via a private placement. PIF and ADIA are likely to subscribe to part of this issue, one of the people said. As per the rules, DFIT’s sponsor Reliance Industrial Investments and Holdings Ltd. (RIIHL), wholly owned by RIL, needs to hold at least 15 per cent of the units on a post-issue basis, locked in for three years.

DFIT will also raise an additional Rs 25,000 crore by way of loans from local banks, including State Bank of India, HDFC Bank, Union Bank of India and ICICI Bank, said people aware of the developments. The banks didn’t respond to queries.