Jio seeks global investors for its optic fibre InvIT

New Delhi: Long-only infrastructure-focussed financial investors, alongwith global pension and sovereign wealth funds, have been identified as Reliance Jio Infocomm attempts to monetise its optic fibre assets in the country to reduce its level of debt. Investment banks Citi, ICICI Securities and Moelis have been chosen to reach out to potential investors in the Middle East, other parts of Asia, the Americas and Australia, sources said.

Potential investors include Qatar Investment Authority, Kuwait Investment Authority, Caisse de Dépôt et Placement du Québec (CDPQ), Abu Abu Dhabi Investment Authority, Canada Pension Plan Investment Board (CPPIB), Kingdom Holdings, Macquarie, Khazanah and Allianz

Reliance decided to demerge its passive tower and optic fibre network into a separate company in order to monetise it through a sale and leaseback or infrastructure investment trust (InvIT) structure. It is, however, eager to carry on as the sponsor of the InvIT, while retaining a minimum 15 percent stake in it.

The rest of the 85 percent will be sold to five global investors.

Potential investors

Potential investors include Qatar Investment Authority, Kuwait Investment Authority, Caisse de Dépôt et Placement du Québec (CDPQ), Abu Abu Dhabi Investment Authority, Canada Pension Plan Investment Board (CPPIB), Kingdom Holdings, Macquarie, Khazanah and Allianz. The fibre assets' valuation is said to be in the range of US$ 6-8 billion.

With the discussions still in the preliminary stage, management talks will possibly start in the coming weeks.

Following this fiscal's third quarter results, Reliance officials had discussed the option to demerge the fibre and tower businesses into Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd, respectively.