Bank of America to buy up to 49.9% of Jio Credit for $1.9 billion

Bank of America will invest 182.68 billion rupees, about $1.92 billion, for a stake of up to 49.9% in Jio Financial Services’ non-bank lending unit.

The transaction initially gives Bank of America a 26.5% holding in Jio Credit through newly issued shares. Its stake could rise to 49.9% after it exercises warrants included in the agreement.

The deal values Jio Credit at roughly $3.8 billion. The lender has built more than $3 billion in assets under management within two years and operates in an Indian non-bank credit market growing at more than 14% across personal, gold, and small-business loans.

Bank of America will become a joint-venture partner, combining its global banking and digital experience with Jio Financial’s local scale and customer base. The investment also provides Jio Credit with additional capital to support expansion.

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