Indian mobile network operator Reliance Jio has reached out to infrastructure-focused financial investors, global pension and sovereign wealth funds in an attempt to monetise its pan-India fibre assets.
According to the sources privy to the matter, potential investors may include Kuwait Investment Authority, Caisse de Dépôt et Placement du Québec (CDPQ), Qatar Investment Authority, Abu Abu Dhabi Investment Authority, Kingdom Holdings, Canada Pension Plan Investment Board (CPPIB), Khazanah, Macquarie and Allianz.
Reliance Jio is looking to take the infrastructure investment trust (InvIT) route as part of its plan to reduce its level of debt. For this, the telecom operator has already approved schemes to demerge its fibre and tower assets. The two new entities that have emerged from this demerging exercise include Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd.
Presently, the company has around 2.20 lakh towers and three lakh kms of optical fibre assets.
The Indian telecom major, however, is expected to continue as the sponsor of the InvIT and retain a minimum 15 percent stake in it, while the remaining 85 percent would be sold to five global investors.