Indian telecom operator Reliance Jio has signed an agreement to mobilize JPY 53.5 billion or INR 3,250 crore as samurai term loan with 7 year bullet maturity from Japan-based banks.

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Reliance Jio, the largest 4G operator in India with more than 160 million subscribers, will use the funds for its ongoing capital expenditure (Capex).

Mukesh Ambani-promoted telecom service provider said in a statement that this funding deal represents the largest samurai loan (low interest loans from Japanese investors) for an Asian corporate.

Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation Singapore Branch have fully underwritten the loan facility that will be shortly launched into syndication.

Last month, the Reliance Jio board had approved raising of around Rs 20,000 crore in debt. The company has invested over Rs 2 lakh crore in the mobile business which has garnered over 168 million customers.

Reliance Jio, which is struggling to enhance ARPU from its data customers, has also signed agreement to buy mobile business assets of Reliance Communications — the company led by his younger brother Anil Ambani — for around Rs 25,000 crore.