New Delhi, Aug. 12 -- Global financial institution Bank of America Corp (BofA) will acquire up to 49.9% in Jio Credit Ltd, the wholly-owned lending subsidiary of Jio Financial Services Ltd, for $1.9 billion, the companies said in a joint statement on Wednesday.

Jio Financial Services is a publicly-listed entity and acts as a holding company, and is the financial services arm of billionaire Mukesh Ambani-backed conglomerate Reliance Industries Ltd.

The investment, which values Jio Credit at about $3.8 billion, will be made through a preferential allotment of equity shares and warrants. The transaction will initially give Bank of America a 26.5% equity interest in Jio Credit, which can rise to 49.9% on exercise of the warrants. The invest...