The Telegraph
Thursday , April 24 , 2014
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Reliance raises $550m

New Delhi, April 23: Reliance Industries has raised a $550-million loan from a consortium of Japanese banks as part of a $8-billion capital expenditure plan for its petrochemicals business.

“In continuation of the fund-raising programme initiated in 2012-13, RIL has tied up an Export Credit Agency (ECA) facility of up to $550 million co-financed by JBIC (Japan International Bank for Cooperation) and a group of other Japanese banks backed by NEXI (Nippon Export and Investment Insurance),” the company said in a statement.

The 12-year loan will partially finance the proposed expansion of RIL’s petrochemical plants, the new gasification unit and refinery off-gas cracker over the next 2-3 years.

The loan is Reliance’s first from a group of Japanese banks.

Under the terms of the loan, JBIC will provide direct financing of up to $330 million and Japanese banks, supported by a 95 per cent NEXI insurance cover, will finance up to $220 million.

The participating banks include the Bank of Tokyo-Mitsubishi UFJ Ltd, Sumitomo Mitsui Banking Corp., Mizuho Bank Ltd and three regional Japanese banks, namely the Gunma Bank Ltd, the Hachijuni Bank Ltd and the Chiba Bank Ltd.

The facility will have a tenor of 12 years and will be used to finance contracts for imports of goods and services signed with more than 20 Japanese suppliers.