Bank of America in Charlotte, N.C., has agreed to buy up to a 49.9% stake in a lending business in a joint with Jio Financial Services in Mumbai, India.
BofA will pay up to $1.9 billion, in the form of equity shares and warrants, for a stake in Jio Credit, a digital-first lender with $3.2 billion of assets under management.
The investment, which initially gives Bank of America a 26.5% equity interest, will let BofA expand its participation in the rapidly growing Indian market. The stake can increase to 49.9% upon exercise of the warrants.
Jio Credit’s board will have equal representation from both Jio Financial and Bank of America. Jio Credit’s existing management team will continue to lead the venture.