Mumbai, Aug 13 (NVI): Jio Financial Services Limited (JFSL) and Bank of America Corporation (BofA) have signed a definitive agreement under which the latter will acquire up to 49.9% stake as a joint venture partner in Jio Credit Limited (JCL), a wholly-owned subsidiary of JFSL, through a preferential allotment of equity shares and warrants.
The deal will involve an investment of up to ₹18,268 crore (~$1.9 billion USD) by BofA through a preferential allotment of equity shares and warrants.
The transaction initially gives Bank of America a 26.5% equity interest in JCL, which can go up to 49.9% upon exercise of the warrants. The transaction is subject to regulatory and statutory approvals.
The investment will allow BofA to expand its participation in the rapidly growing Indian market, the world’s fastest growing major economy at double the global growth rate, while doing so with a partner that has local expertise and differentiated capabilities.
Both companies share the common vision of improving clients’ financial lives through state-of-the-art digital access, innovation, access to credit and strong risk management.
JCL is among India’s NBFCs, having built assets under management (AUM) of ₹30,667 crore (~$3.2 billion USD) as of June 30, 2026, within just two years of operations.
Beyond securing long-term capital for sustainable loan growth, the collaboration provides the venture with access to BofA’s expertise related to financial services, governance, risk
management, and technology.
Pursuant to the transaction, JCL’s Board of Directors will have equal representation from both JFSL and BofA.
The existing management team of JCL will continue driving the strategy and operations at the NBFC and JCL will continue to be consolidated as a subsidiary in JFSL’s financial reporting.
Commenting on the proposed partnership, Mukesh D. Ambani said: “By combining our digital reach with Bank of America’s global pedigree, we will eliminate friction in credit delivery for all Indians, empowering them to chart a prosperous and inclusive path forward for the entire nation.”
Brian Moynihan, Chair and Chief Executive Officer, Bank of America said: “India is one of the world’s most important growth markets, and this investment reflects our confidence in its future, a market we know well and have supported for decades. We are excited to become a partner with Jio Financial Services, which has achieved remarkable scale in a short period of time, growing to more than $3 billion in assets under management in just two years.
“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.” (BVI)
