PROVIDENCE – Bank of America Corp. will invest up to $1.9 billion for a 49.9% stake in Jio Credit Ltd., a lending subsidiary of India-based Jio Financial Services Ltd., as the banking giant expands its presence in one of the world’s fastest-growing financial markets.
The investment, announced Aug. 12, will be made through a combination of equity shares and warrants and will establish Bank of America and Jio Financial Services as joint venture partners.
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The companies said the venture will combine Jio’s digital reach and knowledge of the Indian market with Bank of America’s financial services, technology and risk-management expertise.
Jio Credit, a digital-focused lender, had $3.2 billion in assets under management as of June 30, after just two years of operation.
The company offers secured-lending products, including mortgages, loans against securities, commercial finance and supply-chain finance.
The transaction will give Bank of America and Jio Financial Services equal representation on Jio Credit’s board. Jio Credit will remain a consolidated subsidiary of Jio Financial Services.
“India is one of the world’s most important growth markets, and this investment reflects our confidence in its future,” Bank of America CEO Brian T. Moynihan said.
The deal marks another expansion by Jio Financial Services into financial services through partnerships with major global firms, the company said. Jio also operates joint ventures with BlackRock in asset management and with Allianz in insurance.
The transaction remains subject to customary closing conditions and regulatory approvals.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
