Reliance Industries' wholly owned subsidiary, Reliance Petroleum, has concluded a US$1.5-billion (approximately Rs 6,750 crore) borrowing deal to part-finance its US$6 billion export-oriented refinery project at Jamnagar in Gujarat - the biggest ever sought by an Indian corporation. The loan was priced at 135 basis points over Libor (London inter-bank offered rate). The six-month Libor is pegged at around 4.85% and one year at 5.10%. The loan will have a door-to-door tenure of 10 years, the longest ever by an Indian corporate. In India, the maturity profile for offshore syndicated loans is largely restricted to 5-7 years.
The syndicated loan follows Reliance Industries' recent announcement that Reliance Petroleum will launch an initial public offer (IPO) of US$1.1 - US$1.3 billion to part-finance the project.
17-Feb-06 
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