India, Aug. 12 -- Bank of America's wholly-owned subsidiary NB Holdings Corporation has signed a definitive joint venture (JV) agreement with Jio Financial Services (JFS) to invest up to Rs.18,268.2 Cr ($1.9 Bn) in the latter's NBFC subsidiary, Jio Credit.

After receiving regulatory nods, the transaction would see the US-based bank acquire up to a 49.9% stake in Jio Credit.

As per the terms of the agreement, NB Holdings will initially acquire a 26.5% stake in the company for Rs.6,612.9 Cr via preferential allotment of equity shares. It will also be allotted up to 7.56 Cr convertible warrants for Rs.11,655.3 Cr which can be converted into equity within 18 months to raise its total equity holding in Jio Credit to 49.9%.

Jio Credit's exis...